Thursday, September 1, 2011

Professional Tax in Punjab


The Professional Tax is administered under the provisions of The Punjab Finance Act 1977 and the Punjab Proffesions and Trade Tax Rules 1977. This tax is levied and collected on/from the persons or class of persons engaged in a profession, trade, calling or employment in the Province of the Punjab.

For examples , Companies,lawyers, Doctors, etc

Modes of Professional Tax

1. Companies registered under Companies Ordinance, 1984
2. Factories as defined under the Factories Act,1932
3. Commercial Establishments other than the above said two categories
4. Importers and Exporters
5. Government Contractors
6. Government Builders
7. Government Property Developers
8. Service Providers

    Property Dealers
    Motor Car Dealers
    Motor Cycle Dealer
    Hakeems or Ayuervedics
    Auditing Firms
    Tax consultants
    Member of Stock Exchange
    Money Changers
    Recruiting Agents
    Carriage of Goods and Passengers
    Health Clubs
    Departmental Stores
    Electronic goods Stores
    Cable Operators
    Printing Presses
    Pesticide Dealers
    Tobacco Whole Sellers

Taxing Year
Taxing year is from 1st July to 30th June (Fiscal Year), under section 1 (3) of the Punjab Finance Act, 1977

Payment Duration
Every person liable to pay the tax shall before the 31st day of August, in each calendar year, furnish to the District and Taxation Officer a statement giving his name, address, nature of his profession, trade calling or employment.

Crediting of amount
Every person shall credit the amount of the tax in the nearest treasury in Form P.R.T-2 or send the same to District Excise and Taxation Officer by postal order by a cheque on the State Bank of Pakistan, National Bank of Pakistan or any other bank having clearing accounts with either of these banks.

Deleting of Demand
If any person liable to pay tax discontinuous the trade, profession, employment or calling on the basis of which he is liable to pay the tax such person shall within 30 days of his discontinuing such trade, profession, employment or calling notify the fact to the District Excise and Taxation Officer, under section 10 of the Punjab Professions & Trade Tax Rules, 1977.


  1. Please give following clarification about professional tax :
    a. Whether applicable in the villages out side municipal /town committee limits.
    b. Define other than commercial establishment, how type of shop like one man run can fall in this category?