Overview
Professional Tax (PT) is a state-level tax deducted from employee salaries by the employer and remitted to the local body (corporation/municipality/panchayat). PT rates and slabs vary by state and jurisdiction. Configure PT under Configuration → PT Settings.
PT Settings
- PT Status — Enabled / Disabled (when disabled, PT is 0 for all employees)
Update PT Settings
Click the pencil icon to edit. Changes create a new effective-dated version from the selected payroll month.
1) Registration
- Professional Tax Enabled — Toggle on/off. When off, PT becomes 0 for all employees.
- State — Select the state (e.g., Tamil Nadu (TN)). PT rules depend on State/Local Body.
- Local Body / Jurisdiction — Corporation/municipality (e.g., Greater Chennai Corporation (GCC)). PT is levied by local bodies.
- PT Registration Number — PT account/registration number issued by the local body (e.g., PTMHI1223346)
- Half-year definition (reference) — Periods used in slab computation and deduction schedule (e.g., Apr-Sep & Oct-Mar)
2) Deduction & Payroll Behavior
- Payroll month — Month for which PT deduction is shown
- Income basis used to choose slab — e.g., Average Half-Yearly Income (monthly gross × 6)
- Deduction schedule — When PT is deducted (e.g., Deduct in last month of each half-year — Sep & Mar)
- Rounding — Nearest rupee. PT values are slab amounts but rounding helps for monthly-equal spreading.
Live PT Policy Preview
Shows active values used by the payroll engine:
- Locale — e.g., Greater Chennai Corporation (GCC). Slabs are prefilled for the selected locale.
- Deduction Schedule — e.g., Sep & Mar
- Payroll Month — e.g., 2026-03. PT computed for the selected month.
PT Slab Builder
Configure income-range slabs with PT amounts. Each row has:
- From (₹) / To (₹) — Income range
- PT (Half-Year) ₹ — Tax amount for the slab
- Notes — Slab reference (e.g., GCC w.e.f II/2024-2025)
Click + Add Slab to add a new row or Delete to remove. Click Save or Cancel.
How PT Works in Payroll
PT is deducted from employee salary based on the configured slab and deduction schedule (e.g., Sep & Mar for half-yearly) when you click Process Salary. The system picks the applicable slab based on the employee's income and deducts PT accordingly. The employer remits the collected PT to the local body.
Salary Structure Percentage
Open Configuration → Salary Structure Percentage to manage percentage-based salary calculations.
- Percentage Status — Enabled or Disabled
- When enabled, the message Percentage calculation is active confirms that gross-based percentage setup is used in salary structure calculations.