Professional Tax is levied by states, not by the centre. Each state that levies it publishes its own slabs, and some states do not levy it at all. The amount deducted depends on the employee's monthly gross and the state where they work.
Work location, not home address
PT follows where the employee works. Someone living in one state and working from a branch in another pays PT under the branch state's slabs.
Slabs change, states differ
- Some states deduct a fixed amount every month above a threshold.
- Some deduct a different amount in one month of the year so the annual total matches the cap.
- Some states have no PT at all.
In PeopleOS
PT slabs are maintained state by state, with a gross threshold and a monthly amount. The payroll run looks up the state from the employee's branch, so moving someone to a new branch moves their PT with them.
Check the latest notification from the relevant state before updating slabs.