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Professional Tax (PT)

From this page, you can create the Professional Tax Slabs.

To open this, navigate to Payroll->Payroll Configurations->Salary Components->Professional Tax.

Pro Tax Slab Name:

Enter a name to identify this professional tax slab.

Applicable From:

Select the date from which this tax slab will be effective.

Upper Limit:

Enter the upper salary limit for this slab. This defines the maximum salary amount up to which this slab applies.

Pro Tax Bare By:

Defines who bears the professional tax. Select one of the following:

  • Employee
  • Employer
  • Both
State:

Select the state for which this professional tax slab is applicable. Professional tax rules vary by state in India.

District:

Select the district within the chosen state.

City:

Select the city within the chosen district.

Note: The location specified in this part should also be defined previously in the Branch page. That branch would be assigned to the employee.

Applicable On:

Select when the professional tax is applicable:

  • Gross Pay
  • Net Pay

Tax Slab Configuration:

This section defines the salary ranges and their corresponding tax amounts. You can add multiple slabs using the + button.

From Value:

Enter the minimum salary amount for this slab range.

To Value:

Enter the maximum salary amount for this slab range.

Calculate On:

Select the salary component on which the tax will be calculated:

  • Actual
  • Basic
  • Fixed Value
  • Upper Limit
% / Absolute:

Define whether the tax amount is a percentage of salary or a fixed amount.

  • Percentage(%) — tax is calculated as a percentage of the salary
  • Amount — tax is a fixed amount regardless of the exact salary within the range
Applicable Slab:

Enter the tax amount applicable for this salary range.

Click + to add the slab to the table below. You can add as many slabs as needed to cover the full salary range.