Professional Tax (PT) is a form of direct tax imposed by state governments in some countries, primarily in India. It is levied on individuals who earn income from their professions, trades, or employment.
Follow the below checklist to ensure error free professional tax (PT):
- Enable the option Physically Challenged from the employee profile page to ensure they are excluded from the PT calculation.
- Ensure to enable the option Is Director to exclude the employee from PT calculation if the employee is a director.
- Check if the employee is a senior citizen since the senior citizen PT should be calculated as zero also, the senior citizen cap differs from state to state.
- Ensure the location is mapped and the gross salary is updated for the newly joined employees and update the new location for relocated employees.
- In case any new location is added to the system make sure you map the PT for the new location.
- Check the state specific PT rule. For example, in Maharashtra state, PT first slab is not applicable for female employees.
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