Punjab Assembly passes two state development tax, appropriation acts bills

Chandigarh, July 14 (PTI) The Punjab Assembly on Monday passed the Punjab State Development Tax (Amendment) Bill, 2025, aimed to simplify the tax compliance and improve collections.

Finance Minister Harpal Singh Cheema presented the Bill on the third day of the ongoing special session of the Punjab Assembly here.

The Punjab State Development Tax (PSDT) Act, 2018 mandates a monthly payment of Rs 200 from every income taxpayer in the state. It contributed a sum of Rs 190.36 crore in 2024-25.

Cheema 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 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 2,200 once, in lieu of the monthly Rs 200 (annual Rs 2,400), 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.

The Punjab Appropriation Acts (Repeal) Bill, 2025 was also introduced with the need for the repeal of several outdated and obsolete laws within the state's legislative framework.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that were validly taken or to be taken in relation thereto pursuant to these Acts as if the said enactments are not repealed by this act. PTI CHS OZ OZ OZ