Reply To: Professional Tax in Kerala & Payroll Software that calculate Professional Tax

[Vineeth Jose]

#22233

Yes, the Kerala professional tax assessment is done by the concerned muncipal authority on a half-yearly basis. It is mandatory to pay professional tax for all employees or who are drawing a half-yearly income more than Rs. 12000. The profession tax for the first half i.e. from April to September of the year should be paid on or before August 31. Likewise, for the second half which is from October to March, the profession tax should be paid before the end of February. The concerned muncipal authority usually issue a notice to pay the profession tax within the due time period. If any company or a self employed individual fail to pay on time, then a penalty of 1% interest per month is liable. Also, a fine of Rs. 5000 must be remitted for not paying the professional tax. Further details and the professional tax slab of Kerala can be viewed in the page link below.
Professional Tax in Kerala

In Lenvica HRMS payroll software, the kerala professional tax will be automatically calculated. Payroll software users can mention the payslip heads (Basic Pay, Dearness Allowance etc) that must be considered for estimating the half-yearly income of an employee. Based on this, the payroll software applies the professional tax slab and deduces the half-yearly profession tax liable to the employee. The half-yearly profession tax value is then split equally into six months. This value appears in each payslip of that employee, generated throughout each month in the half year. The professional tax deduction is displayed in payslip of the employee under the salary head called ‘Professional Tax’. In case an employee gets an increment in between then the payroll software will automatically recalculate the professional tax by applying the new salary figure into the professional tax slab of Kerala.