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”.
Click “Professional Tax” under “Compliance”.
Click “PT Rules” under “Configuration, Settings”.
It will take you to the Locations under Settings. To create the location, click “New” under payroll Setting “Location”.
Update 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”.
2. Create PT Component with the below conditions. (By default, the PT component would be pre-configured)
Round off Value
Nearest to INR 1/-
Is FBP component
Part of CTC
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”.
Click “Directory” under “Employees”.
Search and Select the Employee.
Click “View or Edit”.
Ensure the location is mapped under the “Official details”.
To ensure PT Component is selected.
Click “Salary Tab”.
Ensure that the checkbox against Profession Tax is ticked.