Professional Tax (PT)
Set up, pay and check Professional Tax (PT) payments on RazorpayX Payroll.
Professional Tax (PT) is a state-level, mandatory tax levied u/s 16 of the Income Tax Act, 1961. It varies between states and applies to all earning individuals regardless of their profession, trade or employment in India.
Payroll seamlessly handles professional tax deductions for your employees based on the state in which you are registered. Know how you can set up and check payment records in Payroll.
To handle PT payments for Karnataka-based employees:
Payroll only handles Professional Tax (PT) payments and filings, not the initial registration. Know more about the people and resources available for
.To set up PT payments for your organisation:
- Log in to the .
- Navigate to ADMIN OPTIONS → Company Details. Here:
- Go to Provident Fund / ESIC / Professional Tax / LWF → Edit.
- Select Enabled from the PT Status drop-down menu and click Continue.
- On the Company Details page, go to External Credentials → Edit.
- Go to the PT section and update the credentials to the PT portal of your registered state.
- Go to Settings → Payments & Compliance Setup and enable PT Payments and Filings.
You have successfully set up PT for your organisation.
- Know more about .
- If PT is disabled under Company Details → Provident Fund / ESIC / Professional Tax, it is not deducted for any employee.
On the Payroll Dashboard, you can check and modify the PT settings for your organisation and review PT payments.
By default, when you add a new employee, they get added to the same state as your organisation. If PT applies to your state, it is also automatically enabled for the employee.
PT is not deducted automatically for employees who are not in the home state.
- If you are registered for PT in that employee's state, enable PT for that employee.
- Log in to your .
- Go to the particular employee's profile.
- Edit the Provident Fund, Professional Tax & ESI section and enable PT.
- If you are not registered for PT in that employee's state, you can:
- Change the employee's location to your home state in Payroll. In this case, PT is deducted as per your state's policy.
- Keep the employee's current location/state as is. PT will not be deducted for them.
To check whether PT is being deducted for your employees:
- Log in to your .
- Go to Reports → Salary Register.
- Look for PT as a column and ensure deductions are showing up for all employees.
When you finalise the payroll for that employee, click on the Payroll Amount and ensure PT is visible as a row.
Professional Tax payment and filing is done between the 15th and 31st of the following month, depending on the state. Until then, it remains in the pending state. To check the PT payment status:
- Log in to the .
- Navigate to Admin Options.
- Go to Reports → Ledger. A filter view screen appears.
- Select filter Type and choose Professional Tax.
After payment, you can find the challans under Reports → Provident Fund, Professional Tax & ESI.
Due to the introduction of
by Karnataka government, Payroll enables you to automate PT payments (for Karnataka employees) via the Dashboard. Previously, we had paused PT payments via the Dashboard.Watch Out!
Ensure you make the PT payments before 20th of the current month.
There are two ways to make the PT payments for Karnataka employees.
Know how to make PT payments from the Payroll Dashboard for Karnataka employees.
Following are some points to note before you make PT payments for employees on the Payroll Dashboard:
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Payroll Execution and PT Payments:
Payroll makes PT payments only for those employees whose payroll you have executed.- If you executed payroll for few employees, you can make PT payments for only those employees via the Payroll Dashboard. The employees must also be eligible for PT payments.
- For employees who payroll is not executed, you must manually make the PT payments externally.
- When initiating PT payments, Payroll displays the Employee count. This includes only those employees whose payroll is executed but PT payments are pending.
- Employee count does not include employees whose payroll is not executed.
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You can initiate PT payments only once from the Payroll Dashboard.
If you executed payroll and made PT payments via the Payroll Dashboard once already, you can still execute payroll for other employees. However, you cannot make PT payments for these employees from the Payroll Dashboard.
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Mark as Paid:
- Use the Mark as Paid feature after you make the PT payments externally.
- Once you mark a payment as paid, you cannot reverse it.
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If your PT payment is unsuccessful, you must reinitiate the PT payment from the Payroll Dashboard.
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You cannot make PT payments after 20th via Payroll. Make the payments externally via the PT portal and ensure you mark the payment as paid on the Payroll Dashboard.
To make Professional Tax payments for your employees based in Karnataka:
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Log in to the
. -
for the month and execute it.
- Enter the OTP to initiate payroll processing.
- If you have enabled approval workflow, ensure the reviewer approves it.
This executes the payroll successfully. You can now make Professional Tax payments for your employees.
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Go to Pay Employees → Run Payroll.
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Click the Pay KA Professional Tax tab and click Initiate.
In the right pane, you can view the PT payment details such as the current status, the due date, employee count and more.
Watch Out!
- You can make PT payments only for those employees whose payroll is executed.
- Employee count does not include the employees whose payroll you have not executed.
- Employee count only includes the Karnataka employees.
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Click Pay Now. If your initiation failed, click Retry.
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In the Second factor authentication pop-up modal, enter the OTP you receive at your registered mobile number with Payroll. Click Verify.
This successfully initiates the PT payments for employees.
To check the PT payments' status:
- Log in .
- Navigate to ADMIN OPTIONS → Pay Employees → Run Payroll.
- On the Run Payroll page, you can view the latest status of your PT payments and the next steps.
To mark PT payments as paid:
- Log in .
- Navigate to ADMIN OPTIONS → Pay Employees → Run Payroll.
- On the Run Payroll page, follow the steps to .
- In the right pane, click Mark as Paid.
This marks the PT payments for employees as paid. Once you mark as paid, you cannot reverse it.
Your PT payments may fail in some cases. Check how to resolve them.
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Incorrect credentials. PT payments may fail when you initiate them due to incorrect PT credentials.
To resolve this:
- Navigate to ADMIN OPTIONS → Company Details.
- Go to External Credentials → Edit.
- In the PT section, update your PT credentials for Karnataka.
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PT Payments have failed. Due to timeouts or other errors on PT portal, your successful PT payment initiation may fail.
To resolve this, retry the PT payment.
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Employees are not eligible for PT payments. This error occurs when PT is not enabled for your organisation, or PT is not enabled for employee/s.
To resolve this, ensure you enable PT for the organisation and ensure the employees' PT state is Karnataka.
Watch the video below or read along.
There are three steps to make PT payments:
Your organisation may have employees from multiple locations. Use the filter option to list the employees located in Karnataka. This is a prerequisite step.
To check the list of employees as well as the amount payable:
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Log in
. -
Navigate to ADMIN OPTIONS → Reports in the left menu.
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Click Salary Register.
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Use the PT Location filter to list the employees whose PT payments you must make.
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Scroll horizontally against the employees' names to view the PT amounts.
The amount mentioned in the PT column is the PT amount payable to the government.
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Click Download CSV.
This downloads the salary report for the month. Filter the PT Location as Karnataka in the file and calculate the total amount payable for the number of employees whose PT payments are pending.
To file the e-Return:
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Log in to the Karnataka PT
using your registered mobile number. -
Enter the OTP and authenticate your access to the portal.
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Click File Return.
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Select the Return Entry details from the respective drop-down menus. This includes:
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Return Period Type: Annual/Monthly.
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Month:
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Year:
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Return Type: Original/Revised
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Click NEXT.
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In the new table displayed on-screen, enter the number of employees with pending PT payments in the No. of Employees column. For example,
10.The portal automatically calculates the total tax payable.
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Click Save Return.
You have successfully filed the e-return, after which you receive the confirmation message on the same page.
Click Home at the top-left corner to return to PT home page.
After filing the PT e-Return, you must make the E-Payment.
- On the PT e-Prerana home page, click Make E-Payment.
- On the Make E-Payment page, you can view the returns filed in step 2. Click Pay.
- Review the PT-Demand Details as populated from the returns you filed. Click Make e-Payment.
- This redirects you to the Khajane II portal. Here:
- Select the Mode of Payment from the drop-down menu. We recommend you select netbanking as the payment mode.
- Select the Type of E-Payment as SBI Aggregator.
- Enter the captcha and click Submit.
This successfully makes the PT payment for the month. You are automatically redirected to the PT portal.
Click Home at the top-left corner to return to PT home page.
After successfully making the E-Payments, you must submit the returns for which you made the PT payment. This is a mandatory reconciliation practice.
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Click Home to go to the e-Prerana portal home page. Here, click Submit Return.
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Review the return details and click Submit. This opens the Verify and Submit Return page.
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Click Add CTD reference number to link the auto-generated CTD number with your submit return request.
You can now view the tax payable details and the CTD reference number.
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Click Verify & Submit.
You have successfully submitted the returns. Click Home at the top-left corner to return to PT home page.
You have successfully made the PT payments. You can view the details on the home page directly for the current FY.
Click Verify/Print on the e-Prerana portal home page to download the Returns receipt.
When you submit Returns in step 4, you may not find the necessary details on the page. There are two ways to resolve this:
- Navigate to e-Prerana portal home page and click Verify failed payments.
- Copy the CTD Reference number.
- Click Verify against the respective payments.
This can verify your payments post which, you can submit the returns.
If the above process fails, follow the below steps to verify failed payments.
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Go to the
. -
Click Verify Challan Payment Status.
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Enter the CTD number you previously copied and the captcha on-screen.
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Ensure the transaction status is successful.
This successfully verifies the failed payments. You can now
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