About Professional Tax (PT)
Set up, pay and check Professional Tax payments on RazorpayX Payroll.
Professional Tax (PT) is a state-level, mandatory tax levied under Section 16 of the Income Tax Act, 1961. It varies from state to state and applies to all earning individuals regardless of their profession, trade or employment in India.
XPayroll seamlessly handles Professional Tax deductions for your employees based on the state you are registered in. Explore how you can set up and check payment records in XPayroll.
Watch Out!
XPayroll only handles the filing of PT and not the initial registration. Know more about the people and resources available for
.You can enable PT to automatically deduct PT for employees in your home state (the state you provided as your company address under Company Details), assuming PT applies to that state.
To set up Professional Tax compliance for your company:
- Log in to your .
- Navigate to Admin Options → Company Details → Provident Fund / ESIC / Professional Tax / LWF.
- Click EDIT and enable PT.
- Go to Company Details → External Credentials 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 enabled Professional Tax for your organisation. Know more about
.If PT is disabled under Company Details → Provident Fund / ESIC / Professional Tax, it is not deducted by XPayroll for any employee.
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 XPayroll. 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.
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