Deduction from Salary of Punjab State Development Tax (Professional Tax)

Can assessee deduct amount of Punjab State Development Tax (Professional Tax) from Income From Salary------Yes

The provisions of Section 16
which read as under:-

The income chargeable under the head "Salaries" shall be computed after making the following deductions, namely :—

  (i) [***]

Following clause (ia) shall be inserted after clause (i) of section 16 by the Finance Act, 2018, w.e.f. 1-4-2019 :

(ia) a deduction of forty thousand rupees or the amount of the salary, whichever is less;

 (ii) a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee who is in receipt of a salary from the Government, a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or other perquisite) or five thousand rupees, whichever is less;

(iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law.

(iv) [***]

Punjab State Development Tax is incorporated under the provisions of clause (2) of Article 276 of Constitution by Punjab State Government.

So any tax paid under the act is eligible to deduction under section 16(iii) of Income Tax Act

As the act is applicable with effect from 19 Aptil 2018 to for the month of April Rs. 80 then Rs. 200 per month (Total 2280 for the year 2018-19) can be claimed  as deduction from Salary