Punjab’s new ₹200 per month tax comes with penalty

CHANDIGARH: The Punjab government has notified the new levy of Rs 200 per month on income tax payees in the state, with some strict penal provisions.

“If a registered employer fails without reasonable cause to make payment of any amount of tax within the required time, a penalty equal to 50% of the amount of tax due or Rs 50 for each day of delay will be imposed upon him,” reads the Punjab State Development Tax Act, 2018, which received the assent of the governor on April 16.

“If the employer fails to deduct the tax at the time of payment of salary or wage, he will be liable to pay interest at the rate of two percent of the tax amount in addition to the amount of tax,” it further says.

And it also gives no right to appeal: “No court shall entertain any suit or other proceedings to set aside or modify or question the validity of any assessment, order or decision made or passed by any officer or authority under this act.”

It has brought under its ambit all “professions, trades, callings and employments”.

There is also a provision for application of rules with retrospective effect, “only if the same are required to be made in public interest”.

The state expects to generate Rs 150-200 crore a year from the tax in addition to getting access to cheaper loans from institutions such as Asian Development Bank by showing incomegeneration capacity.

Going by the Income Tax Act, it has exempted senior citizens, persons who earn wages on a casual basis, and agriculturists or their family members who “sell and produce within the state as owner, mortgagee, tenant or otherwise”.