Statutory
Professional taxPT
Professional tax is a state-level tax on salaried income, deducted monthly by the employer according to the slab of the state where the employee works, capped at ₹2,500 a year.
Slabs, due dates and even the period (monthly, half-yearly or annual) differ by state. Karnataka charges ₹200 above ₹25,000; Maharashtra exempts women up to ₹25,000; Tamil Nadu and Kerala levy it half-yearly through local bodies. Delhi, Haryana, UP and Rajasthan do not levy it at all.
The employer registers for a PT registration and enrolment certificate, deducts, deposits and files returns on the state schedule.
In Indian payroll
PT follows the work location, not the head office. A company with branches in three states runs three PT schedules; payroll needs the employee's location on the record to get it right.
What is Professional tax?
Professional tax is a state-level tax on salaried income, deducted monthly by the employer according to the slab of the state where the employee works, capped at ₹2,500 a year.
Why does Professional tax matter in Indian payroll?
PT follows the work location, not the head office. A company with branches in three states runs three PT schedules; payroll needs the employee's location on the record to get it right.
Related terms
In Kuzhu
The Payroll module in Kuzhu is where Professional tax is handled, on the same employee record as everything else.
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