Create Professional Tax Rate Table - A summary of the activity

Professional tax is deducted for the employees who draw gross salary beyond a specific amount.

Defining professional tax rates: Through this activity, you can specify the professional tax amount applicable for different slabs of gross salaries. You are to also specify the frequency of deduction of professional tax; the frequency can be monthly, quarterly, half-yearly or yearly. This information is applicable for a tax setup unit and region under which the gross salaries are defined.

Additionally, you can specify the date from which the professional tax amounts you define are brought into effect.

Defining professional tax rates for a specific month: If you require defining a different professional tax amount for a specific month due to exceptions, you can specify the professional tax amount for the specific month in a separate table.

Editing professional tax rates: You can also edit the professional tax amounts unless these tax amounts have been used for payroll processing.

Tracing histories of professional tax rates: You can trace the histories of the professional tax amounts that have already been defined for different slabs of gross salaries.

Using professional tax rates: During payroll processing, the system retrieves these tax amounts, to deduct the professional tax for the employee. 

Example: For example, the gross salary falls between the range Rs 15,000 to Rs 30,000. You have defined the professional tax as Rs 300 for this range, and the frequency is selected as “Monthly”.

This definition implies that Rs 300 will be deducted as professional tax every month from the employee’s gross salary.

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Prerequisites

None

What you can do in this activity

Creating professional tax rate table