Chandigarh, July 14
The Punjab Legislative Assembly today unanimously passed the Punjab State Development Tax (Amendment) Bill, 2025, and the Punjab Appropriation Acts (Repeal) Bill, 2025, presented by the Punjab Finance Minister, Advocate Harpal Singh Cheema.
This Punjab State Development Tax (Amendment) Bill, 2025, aims to streamline and enhance the efficiency of the Punjab State Development Tax Act, 2018, which mandates a monthly payment of Rs 200 from every income taxpayer, contributing to annual revenue of Rs 190.36 crore during the financial year 2024-25.
The Finance Minister highlighted that representatives of various institutions and organisations had approached him regarding certain practical difficulties in the existing Act passed by the previous Congress government. He said after discussions with the Chief Minister Bhagwant Singh Mann, several key provisions were designed to simplify compliance and clarify various aspects of the tax framework introduced in the amended bill. “A notable convenience for taxpayers is the introduction of a lump-sum tax payment option, allowing individuals to deposit Rs 2200 once, in lieu of the monthly Rs 200 (annual Rs 2400), thereby simplifying the payment process”, he added.
Additionally, a new Section 11A is being incorporated into the PSDT Act to facilitate a one-time settlement mechanism. To address complexities arising from specific circumstances, the bill proposes the inclusion of new Sections 11B, 11C, and 11D within the PSDT Act. These sections will delineate tax payment liabilities in cases involving the demise of a registered individual, the merger of companies, or instances of corporate insolvency.
Moreover, to prevent redundant obligations, the bill suggests requiring only a single registration in situations of dual liability, effectively eliminating the need for separate registrations as both an individual and an employer. Finally, a vital amendment proposes to cap the maximum penalty payable under the Punjab State Development Tax Act, 2018, ensuring that the penalty amount will not exceed the corresponding tax due.
The Punjab Appropriation Acts (Repeal) Bill, 2025 is introduced with the need for the repeal of several outdated and obsolete laws within the state’s legislative framework. It has been observed that a large number of Appropriation Acts enacted over the past several years have, in effect, lost their meaning, yet they remain listed on the Statute Books. Furthermore, it has been emphasised that repeal of Appropriation Acts whose terms have ended will in no way have any adverse effect on actions that were validly taken or to be taken in relation thereto pursuant to these Acts as if the said enactments are not repealed by this act. It will, however, and importantly, serve the purpose of clearing the Statute-Books and alleviating the burden associated with outdated legislation.
