PB state taxes in Punjab

Punjab State Development Tax (the professional-tax equivalent)

Punjab levies the Punjab State Development Tax on persons in employment, trade or profession above an income threshold, at Rs 200 a month, which stays within the Rs 2,500 a year constitutional cap. Employers deduct and remit it for employees and a self-employed person or business pays their own. As with professional tax in every state, the employee deduction is available only to an old-regime taxpayer, not under the default new regime.

Punjab levies a State Development Tax of Rs 200 a month (within the Rs 2,500 a year cap); the employee deduction applies only on the old regime. (Punjab State Development Tax Act 2018; Constitution Article 276 (Rs 2,500 cap); Income-tax Act 1961 s.16(iii) deduction old-regime only)

Stamp duty and the women-buyer concession

Punjab property stamp duty is broadly in the region of 5 to 7% (a base rate plus a social-infrastructure cess in some periods), plus a registration fee, with a concession of about 1 percentage point where the property is bought in a woman's name. Stamp duty also applies to business documents such as lease deeds. Rates and the women-buyer concession are state-set and revised periodically, so verify the current figure against the Punjab revenue department before a transaction.

Punjab property stamp duty is broadly 5 to 7% plus a registration fee, with a roughly 1 percentage-point women-buyer concession; verify current figures against the state department. (Indian Stamp Act 1899 as applicable in Punjab + state amendments; verify current rates against the Punjab Department of Revenue)

Worked example

Gurpreet — Ludhiana, PB

hosiery manufacturer registering staff and buying a unit in his wife's name (2026-27)

Gurpreet runs a small hosiery unit in Ludhiana with staff and the family buys a unit registered in his wife's sole name.

He deducts the Punjab State Development Tax (Rs 200 a month) for liable employees and pays his own within the Rs 2,500 a year cap. Registering the unit in his wife's name, the family checks the Punjab women-buyer concession (broadly 1 percentage point) against the current rate. If he is on the old regime the development tax he pays is deductible; on the new regime it is not.