PT or Professional Tax refers to a tax collected by the state government from working professionals. It is being levied since 1949. Professional tax is just like Income tax except for the fact that Central Government collects the income tax, whereas PT goes to state government. Professional tax is a source of revenue for the state government. In some states, any amount is paid as professional tax to the state government as a deduction under the Section 16 of income tax act.
This is a minor tax based on the income of an employee. Professional tax is mandatory similar to income tax and is paid by every employee in private companies. The maximum amount payable per year is Rs.2, 500. Nevertheless, every state has a different rate and method of collecting professional tax.
HR and payroll people play a crucial role in salary processing and deduction of professional tax. This needs to be done with great care and diligence. This is why many businesses are resorting to payroll software and Pocket HRMS is one such solution to help with accurate payroll processing and tax deductions according to the tax reforms and rates of different states/locations.
Pocket HRMS calculates Professional tax by formula or monthly basis or once in six month. You just select the location and then define the range of amount for that particular location and through that the amount of Professional Tax will be deducted for the employee.
Professional Tax ranges for different locations can be set here. Different locations have different tax ranges and calculation periods. Different ranges can be set for each location defined by the respective state government. The values to be entered in ‘Earnings range from’ and ‘Earnings range to’ could be changed whenever required.
Pocket HRMS payroll software makes it easy to delete the data for particular location by simply clicking on the delete button, as easy it sounds. The value of Professional tax will not appear in ‘Payroll process’ if there are no data values for a location.
So these are few highlights of Pocket HRMS payroll software, which helps small and mid-sized businesses for managing employee data along with automating their payroll as well as accurately deducts Professional Tax.
To learn more about how Pocket HRMS can eliminate the hassles of payroll processing for your business, click here or SMS SAGE to 56767. You can also shoot a note at email@example.com