PT or a Professional tax is a direct tax that applies to all individuals who earns income from employment, practicing their trading or professions such as doctors, lawyers, teacher, CA, etc.
The PT is deducted from the individual's monthly salary and is deposited to the state government. Professionals also pay it directly to the government.
The professional tax are calculated for certain states and are under different brackets.
- The professional tax will be calculated on the Gross Earnings ( Basic Pay + Additional Earnings)
Profession Tax Rates in Key States of India
|Kerala (Half yearly income slabs and half yearly tax payment)|
How is Professional Tax calculated in Deskera People?
With Deskera People, with the below mentioned simple steps you can easily calculate the PT for your employees.
- Under Employees Module>>Select Employee List, a screen will appear
- Then select the Employee and edit the profile/click on +Add Employee button to create a new employee profile
- Next, a screen will appear, go to Compliance Details tab,
4. You can see a Professional Tax checkbox where you can tick the check box and the PT will be applicability for the employee.
5. Based on the above mentioned state wise PT rates, these calculation will be auto-calculate in the system, once the payrun is processed. You can view this amount under Employee Deduction Column.