Professional Tax (PT)

Note: This topic keeps updating whenever a new payroll report is added to Keka

As of now, there are around 50 payroll reports available on Keka with many more coming soon.  To view the available reports, please go to Payroll >> Reports.

Few examples of payroll reports available on Keka:

Payroll:

• Current Salary Structure
• Current Salary With Bonus
• Employees Current CTC
• Expense Claim Report
• Financial Information
• Component break up for each employee (Pay Register)
• Contribution / Deduction Reconciliation Report
• Head Count Monthly Report
• Monthly Batch Payment – Bank Transfer, Cheque, Cash
• Payroll Journal Vouchers Report – Tally
• Salary Revision Report
• All Employee YTD Report

Income Tax:

• Annual Income Tax Report
• Annual HRA Reports
• Investment Declaration Summary Report
• Monthly Income Tax Statement

Provident Fund (PF):

• PF Remittance Report
• PF Monthly Electronic Return (ECR)
• PF Contribution card – Form 6A
• PF Joinee Statement – Form 5
• PF Exits Statement – Form 10
• PF Monthly Statement – Form 12A (Revised)
• Aadhar (UIDAI) submission Form
• PF Summary Report
• PF Arrear Report
• PF Admin Charges Report

Employees’ State Insurance (ESI):

• ESI Monthly Statement
• ESI Monthly Return (Electronic)
• Contribution Register (Form 5)
• ESI Overrides
• ESI Summary Report

Professional Tax (PT):

• PT Monthly Statement
• PT State Wise Report (Form 5)
• PT Override Report

 

If you are looking for any specific report, write to support@keka.com.

The rate at which Professional tax is charged is based on the Income Slabs set by the respective State Governments. In case of salaried individual, the Professional Tax (PT) is to be deducted by the employer from the salary and deposit the same with the state government.

In case of organisations having employees spread across various states, they can either choose to deduct PT by employee’s work location, or can choose the central work location (from where the payroll processing happens). A good example of latter case is a company (located in Mumbai) employing sales individual across various states in India, but salary being processed from Mumbai (Maharashtra State) location. In such cases, the company might want to deduct PT of all employees (irrespective of their work location) as per Maharashtra state rules/slab.

To configure PT deduction for your employees, follow the steps below:

Step 1: Go to Settings >> Payroll >> Statutory Filing Information

 

Step 2: Under ‘Statutory Filing Information’, go to ‘Professional Tax Info’ (Section 3) to turn on/off, or configure PT deduction location.

 

Step 3: Use the toggle button to turn PT on/off.

In case PT applicable state is same as work location of employees, select ‘Use Actual’. This will enable the PT deduction of employees based on their actual work location.

In case of PT applicable state needs to be defaulted to any specific organisation’s location, select ‘Use Default State’. Click on ‘+Add’ button to choose the default state that needs to be considered for PT deduction.

Once done, click on ‘Save’ button and the settings will be effective immediately.

Related:

What is Professional Tax (PT)?

Keka is not calculating Professional Tax (PT) for employee(s), why?

 

In case you are facing trouble while configuring PT for your employees, write to support@keka.com.

 

Professional Tax (PT) is a tax levied by the State Governments and is not be applicable in all States & UTs. Also, the rate at which PT is charged is based on the Income Slabs set by the respective State Governments.

Learn more about PT, States & Union Territories it’s applicable in, and PT Rate Slabs »

If Keka is not calculating PT for your employee(s), it can be because of any of the following reasons:

If PT is not calculated for few employees, please check the following conditions:

1. Check if the work location (State/UT) of employees (getting excluded from PT calculation), in applicable for PT deduction.
2. Employee’s Income is falling under Income Slabs applicable for PT deduction.  Check Income Slab for PT deductions »
3. Employee’s ‘Date of Birth’ and ‘Gender’ are filled in.  This is important because PT depends on age and gender of an employee as well.

To check if ‘Gender’ and ‘Date of Birth’ data of an employee exists, please follow the steps below:

Step 1: Go to employee’s profile by typing the employee’s name in the search bar

 

Step 2: Go to ‘Profile’ tab of the employee’s profile

 

Step 3: Under Profile >>Primary Details, check if ‘Gender’ and Date of Birth’ information exists

 

Step 4: If any of the information is missing, click on ‘Edit’ link to add these details.

For updating multiple employees profile information in bulk, read How do I update employees Profile & Job information in bulk?

 

If PT is not calculated for all employees, please check if the work location (State/UT) of employee is applicable for PT deduction.

To check work location of all employees, please follow the steps below:

Step 1: Go to Employees >> Dashboard >> All Employees

 

Step 2: Click on ‘All employees (Number)’ to view list of all employees along with their work location

In case ‘Location’ is missing for employee(s), update ‘Location’ of employee(s) either by going to their profile, or update in bulk. Read, How do I update employees Profile & Job information in bulk?

 

Also, check if the ‘Location’ is correctly associated to the State or UT your employees’ work location belongs to. To do this, follow the steps below:

Step 1: Go to Settings >> Company Settings >> Locations

 

Step 2: Against ‘Location’ name, you want to verify, for associated State or UT, click on ‘Edit’ icon to view details of State or UT it has been associated with.  In case you think that this has been wrongly selected, please update it.

List of states that are applicable for PT deduction:

• Andhra Pradesh
• Assam
• Bihar
• Goa
• Gujarat
• Jharkhand
• Karnataka
• Kerala
• Madhya Pradesh
• Maharashtra
• Meghalaya
• Odisha
• Tamil Nadu
• Telangana
• Tripura
• West Bengal

 

If you are still facing issues with PT calculation of employees, write to support@keka.com.

Professional Tax (PT)

Professional Tax is a tax levied by the State Governments on all ‘Earning Individuals’. ‘Earning Individuals’ include all salaried individuals, as well as individuals practising any profession such as Doctor, Lawyers etc.

The rate at which Professional tax is charged is based on the Income Slabs set by the respective State Governments. However the maximum Professional Tax that can be levied by any State till date is Rs 2,500/-. There are some states and union territories that do not charge professional tax.

The total amount of professional tax paid during the year is allowed as Deduction under Section 16 of The Income Tax Act.

Professional Tax is a source of revenue for the State Governments and is used to implement schemes for the welfare and development of the region.

In case of salaried individual, the Professional Tax (PT) is to be deducted by the employer from the salary and deposit the same with the state government. If case the earning individual is not a salaried individual, PT needs to be paid by the person directly.

Professional Tax Slab Rates in Various Indian States:

Andhra Pradesh

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 15,000	Nil
15,001 to 20,000	150
Above 20,000	200

Assam

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 10,000	Nil
10,001 to 14,999	150
15,000 to 24,999	180
Above 24,999	208 & 212

*Professional Tax is payable @Rs 208 for first 11 months and Rs 212 in the last month.

Bihar

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 25,000 for men	Nil
25,001 to 41,666	83.33
41,667 to 83,333	166.67
Above 83,333	208.33

Goa

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 15,000	Nil
15,001 to 25,000	150
Above 25,000	200

Gujarat

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 5,999	Nil
6,000 to 8,999	80
9,000 to 11,999	150
Above 11,999	200

Jharkhand

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 25,000	Nil
25,001 to 41,666	100
41,667 to 66,666	150
66,667 to 83,333	175
Above 83,333	208 & 212

*Professional Tax is payable @Rs 208 for first 11 months and Rs 212 in the last month.

Karnataka

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 15,000	Nil
Above 15,000	200

Kerala

Monthly Salary (in Rs.)	Tax (in Rs. Per month) Payable Semi Annually
Up to 1,999	Nil
2,000 to 2,999	20 (120 - Semi Annually)
3,000 to 4,999	30 (180 - Semi Annually)
5,000 to 7,499	50 (300 - Semi Annually)
7,500 to 9,999	75 (450 - Semi Annually)
10,000 to 12,499	100 (600 - Semi Annually)
12,500 to 16,666	125 (750 - Semi Annually)
16,667 to 20,833	166 (1000 - Semi Annually)
Above 20,833	208 (1250 - Semi Annually)

Madhya Pradesh

Annual salary (in Rs.)	Tax (in Rs. Per month)
Up to 1.5 lakhs	Nil
1.5 lakhs to 1.8 lakhs	125
1.8 lakhs and above	212

Maharashtra

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 7,500 for men	Nil
Up to 10,000 for women	Nil
7,500 to 10,000	175
10,000 and above	200 (except February when its 300)

Meghalaya

Monthly Salary (in Rs.)	Tax (in Rs. Per month)
Up to Rs 4,166	Nil
4,167 to Rs 6,250	16.50
6,251 to 8,333	25
8,334 to 12,500	41.50
12,501 to 16,666	62.50
16,667 to 20,833	83.33
20,834 to 25,000	104.16
25,001 to 29,166	125
29,167 to 33,333	150
33,334 to 37500	175
37,501 to 41,666	200
Above 41,666	208 & 212

*Professional Tax is payable @Rs 208 for first 11 months and Rs 212 in the last month.

Odisha

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 5,000	Nil
5,001 to 6,000	30
6,001 to 8,000	50
8,001 to 10,000	75
10,001 to 15,000	100
15,001 to 20,000	150
Above 20,000	200

Tamil Nadu

Half yearly salary (in Rs.)	Tax (in Rs. Per 6 month)
Up to 21,000	Nil
21,001 to 30,000	100
30,001 to 45,000	235
40,001 to 60,000	510
60,001 to 75,000	760
75,001 and above	1095

Telangana

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 15,000	Nil
15,001 to 20,000	150
Above 20,000	200

Tripura

Monthly salary (in Rs.)	Tax (in Rs. Per month) Payable Semi Annually
Up to 5,000	Nil
5,001 to 7,000	70 (420 - Semi Annually)
7,001 to 9,000	120(720 - Semi Annually)
9,001 to 12,000	140(840 - Semi Annually)
12,001 to 15,000	190(1140 - Semi Annually)
Above 15,000	2496(208 - Semi Annually)

West Bengal

Monthly salary (in Rs.)	Tax (in Rs. Per month)
Up to 10,000	Nil
10,001 to 15,000	110
15,001 to 25,000	130
25,001 to 40,000	150
More than 40,000	200

 

Exemption from Paying Professional Tax (As per the Act)

• Any person suffering from a permanent physical disability (including blindness)
• Parents or guardian of any person who is suffering from mental retardation.
• Persons who have completed the age of 65 years.(60 years in case of Karnataka)
• Parents or guardians of a child suffering from a physical disability as specified in clause (C) w.e.f 1.10.1996.

Professional Tax is not applicable in following States & UTs:

Arunachal Pradesh
Andaman & Nicobar
Chandigarh
Chattisgarh
Dadra & Nagar Havelli
Daman & Diu
Delhi
Haryana
Himachal Pradesh
Jammu & Kashmir
Lakshadweep
Nagaland
Punjab
Rajasthan
Uttaranchal
Uttar Pradesh

 

Related: Keka is not calculating Professional Tax (PT) for employee(s), why?

 

If you are facing trouble with PT deductions on Keka, write to support@keka.com.