Professional Tax is a State Government levied Tax on individuals who earn income from any profession, trade, or employment.

 

Professional Tax is a state-level tax where each state has its own rules and regulations on how much tax will be imposed and how it should be remitted.

 

We need to:

1. Create the Location Master since PT gets calculated based on the STATE selected.


2. Create PT Component with the below conditions. (By default PT component would be pre-configured)

 

 

 

1. Create the Location

 

 

On the Home Page click “Compliance”.

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Click “Professional Tax” under “Compliance”.


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Click “PT Rules” under “Configuration, Settings”.

 

 

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It will take you to the Locations under Settings. To create the location, click “New” under payroll Setting “Location”.

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Description automatically generated with medium confidenceUpdate the “Location Information”.

 

Enter the “Location”.

 

Select the “State” from the drop-down.

 

If “Metro” you need to select “Yes”, else select “No”.

 

Enter the “PT Number” and “ESI Number”. You must enter the ESI and PT registration numbers.

 

Select the “ESI Type” as Standard Contribution which is the uniform contribution for all companies.

 

 

Update the “Pay Effective Month” which will be when the location will come into effect.

 

Select “Active” to activate the location.

 

Enter the “TAN” and “TAN Circle”.

Go to the e-Filing portal home page of the Income Tax portal -, and click “Know TAN Details”.

 

Click on “Save”.

 

 

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2. Create PT Component with the below conditions. (By default, the PT component would be pre-configured)

 

Fields Name

Component Configuration

Name

Profession Tax

Abbreviation

PT

Paid Component

Yes

Pay Type

Statutory

Calculation Type

Slab wise

Map To

None

Round off Value

Nearest to INR 1/-

Component Type

Fixed

Is FBP component

No

Attendance Dependent

No

Part of CTC

No

Active

Yes

FFS component

No


  

 

You need to map the location of employees under Employee Master >> Official Details tab and in the Salary Details tab, ensure PT Component is selected.

Map the Location of employees.

 

On the Home page click “Teams”.

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Click “Directory” under “Employees”.

 

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Search and Select the Employee.

 

Click “View or Edit”.

 

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Ensure the location is mapped under the “Official details”.

 

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To ensure PT Component is selected.



Click “Salary Tab”.

 

Ensure that the checkbox against Profession Tax is ticked.

Click "Save".

 

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