Professional Tax in Kerala & Payroll Software that calculate Professional Tax

[Rajan Nair]

#22230

Is professional tax calculated half yearly in Kerala? Could Lenvica HRMS payroll software calculate professional tax along with payroll processing of employees?

[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.

[Prajith]

#22238

What is the due date and penalties for payment of professional tax in kerala?Provide me half yearly slab for professional tax in kerala?

[Steve Alex]

#22242

Hello Prajith,

The profession tax for the first half (April-September) of the year should be paid on or before August,31. Similarly, for the second half (October-March), the profession tax should be paid before the end of February. In case, the profession tax payment gets delayed, you will be liable to pay a penalty @1% per month. Also, a fine of Rs.5000 will be charged for non-payment of profession tax.

As per the Kerala Municipal Act, 1994, it is mandatory to pay profession tax for all employees or who are drawing a half-yearly salary of more than Rs.12,000. The profession tax assessment is done by the concerned municipal authority on a half-yearly basis.
The profession tax slab rates are as follows :

Income Slab (half-yearly)	Profession Tax (payable half-yearly)
Upto Rs.11,999	Nil
From Rs.12,000 to Rs.17,999	Rs.120
From Rs.18,000 to Rs. 29,999	Rs.180
From Rs.30,000 to Rs. 44,999	Rs.300
From Rs.45,000 to Rs. 59,999	Rs.450
From Rs.60,000 to Rs. 74,999	Rs.600
From Rs.75,000 to Rs. 99,999	Rs.750
From Rs.1,00,000 to Rs. 1,24,999	Rs.1000
From Rs.1,25,000 and above	Rs.1250

[Smitha Paul]

#22249

How the software calculates the professional tax before last month’s salary processing? The professional tax is based on the salary earnings?

As per the Kerala Municipal Act, 1994, The professional tax in Kerala for the first half (April-September) of the year should be paid on or before August,31. Similarly, for the second half (October-March), the profession tax should be paid before the end of February. In case, the profession tax payment gets delayed, you will be liable to pay the penalty @1% per month. These are the rules of the government.

So how will the software help me to collect professional tax from my employees before processing the salary of September(as in the case of first half PT)?

[Nisa]

#22251

Hi Smitha,
Lenvica HRMS helps you automate the professional tax calculation for Kerala. As you process payroll, professional tax gets automatically calculated as per the rules. Lenvica HRMS also has a report that describes professional tax to be paid, and the amount to be deducted from employees each month. Since the professional tax has to be paid even before salary is processed for August and September in the first half-year(February and March in the second half-year), the software uses data projection to arrive at half-yearly wages out of which the professional tax is calculated. The report even includes a calculation history for you to understand how professional tax is calculated for each employee.

[Cherian Philip]

#22258

Hi. I have a PT wage of about Rs.35000. But my company deducts Rs.300 every month. Isn’t PT half yearly?

[Sujit Manoharan]

#22261

Hi Cherian,
Kerala professional tax assessment is done by the concerned municipal authority on a half-yearly basis. The profession tax for the first half i.e. from April to September of the year should be paid by end of August 31 and for the second half which is from October to March, the profession tax should be paid before the end of February. But your company has chosen to deduct the professional tax evenly from you by deducting Rs.300 every month. Isn’t this better than deducting Rs.1800, once in six months?

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