--- title: "Professional Tax" space: "Frappe HR" url: "https://docs.frappe.io/hr/india-payroll/professional-tax" updated: "2026-07-03" --- # Professional Tax Professional Tax (PT) is a state-level tax levied on employment income in India. India Payroll automates PT deduction on every Salary Slip update based on the employee's **Employment State** and **Gross Pay**. > **Statutory reference:** Article 276 of the Constitution limits PT to ₹2,500 per person per year. --- ## 1. How to Enable 1. Go to **Payroll Settings → India Payroll** tab. 2. Check **Enable Professional Tax Deduction**. 3. Save. ![](/files/image4a4563.webp) *Enabling Professional Tax Deduction* Once enabled, the `Professional Tax` salary component is automatically injected into (or removed from) each Salary Slip's deductions table when the slip is saved. --- ## 2. How It Works The `apply_professional_tax` method runs via `apply_regional_deductions` hook: ``` Salary Slip (before_save) │ ├─ enable_professional_tax in Payroll Settings? → NO → skip ├─ salary_structure set? → NO → skip ├─ employment_state from SSA → not in PT states? → skip │ ├─ frequency = monthly? │ └─ _compute_pt_monthly(gross_pay, state_config, month, gender) │ └─ frequency = half-yearly? └─ _compute_pt_half_yearly(doc, state_config) └─ cumulative gross across submitted slips in period − already deducted PT = this month's PT ``` The computed amount replaces any existing `Professional Tax` row. --- ## 3. Employment State PT is determined by the **Employment State** set on the **Salary Structure Assignment** (not the Employee master's state field). This allows an employee transferred mid-year to have the correct PT rule applied per assignment. To set it: 1. Open the **Salary Structure Assignment** for the employee. 2. Set **Employment State**. > **Validation:** When PT is enabled, saving a Salary Structure Assignment without an Employment State throws an error, preventing silent mis-deduction. ![](/files/image2d5f45.webp) *Employment State in Salary Structure Assignment* --- ## 4. Supported States & Rate Tables ### Monthly States These states deduct PT every month based on gross pay slabs. | State | Slab (Gross ≤) | PT Amount (₹/month) | | ------------------ | -------------- | ---------------------- | | **Andhra Pradesh** | 15,000 | 0 | | | 20,000 | 150 | | | Above 20,000 | 200 | | **Assam** | 10,000 | 0 | | | 15,000 | 150 | | | 25,000 | 180 | | | Above 25,000 | 208 | | **Bihar** | 25,000 | 0 | | | Above 25,000 | 200 | | **Gujarat** | 5,999 | 0 | | | 8,999 | 80 | | | 11,999 | 150 | | | Above 11,999 | 200 | | **Jharkhand** | 25,000 | 0 | | | Above 25,000 | 100 | | **Karnataka** | 25,000 | 0 | | | 41,666 | 150 | | | Above 41,666 | 200 | | **Madhya Pradesh** | 18,750 | 0 | | | 25,000 | 125 | | | 33,333 | 167 | | | Above 33,333 | 208 | | **Maharashtra** | 7,500 | 0 | | | 10,000 | 175 | | | Above 10,000 | 200 (₹300 in February) | | **Meghalaya** | 4,166 | 0 | | | 6,250 | 16 | | | … | … | | | Above 37,500 | 208 | | **Odisha** | 13,304 | 0 | | | 25,000 | 125 | | | 41,666 | 167 | | | Above 41,666 | 208 | | **Sikkim** | 20,000 | 0 | | | 30,000 | 125 | | | 40,000 | 150 | | | Above 40,000 | 200 | | **Telangana** | 15,000 | 0 | | | 20,000 | 150 | | | Above 20,000 | 200 | | **Tripura** | 7,500 | 0 | | | 15,000 | 150 | | | Above 15,000 | 208 | | **West Bengal** | 8,500 | 0 | | | 10,000 | 90 | | | 15,000 | 110 | | | 25,000 | 130 | | | 40,000 | 150 | | | Above 40,000 | 200 | ### Half-Yearly States These states compute PT on a cumulative basis across each half-year period (Apr–Sep or Oct–Mar). The full slab amount is charged in the **first month** of the period, and nothing more until the next period. | State | Period | Slab (Cumulative Gross ≤) | PT Amount (₹/half-year) | | -------------- | ----------------- | ------------------------- | ----------------------- | | **Tamil Nadu** | Apr–Sep / Oct–Mar | 21,000 | 0 | | | | 30,000 | 135 | | | | 45,000 | 315 | | | | 60,000 | 690 | | | | 75,000 | 1,025 | | | | Above 75,000 | 1,250 | | **Kerala** | Apr–Sep / Oct–Mar | 11,999 | 0 | | | | 17,999 | 120 | | | | 29,999 | 180 | | | | 44,999 | 480 | | | | 59,999 | 720 | | | | 74,999 | 1,080 | | | | 99,999 | 1,440 | | | | Above 99,999 | 1,560 | --- ## 5. Special Rules ### Maharashtra — February Rule Maharashtra employees earning above ₹10,000/month pay **₹300 in February** instead of the usual ₹200. This ensures the annual total equals the constitutional cap of ₹2,500: ``` 11 months × ₹200 + February × ₹300 = ₹2,500 ``` This is handled automatically by the hook, no configuration required. ### Maharashtra - Women Exemption Women earning **≤ ₹10,000/month** are fully exempt from Professional Tax in Maharashtra. The hook reads the `gender` field from the Employee master and sets PT to ₹0 automatically. ### Half-Yearly Incremental Logic (Kerala, Tamil Nadu) For half-yearly states, the hook: 1. Sums **gross_pay** from all *submitted* salary slips in the current half-year period (excluding the current unsaved slip). 2. Adds the current slip's gross pay → cumulative figure. 3. Applies the state slab to the cumulative → **total PT due for the period**. 4. Subtracts PT already deducted in prior slips of the same period. 5. Charges the remainder (minimum ₹0) on the current slip. **Result:** PT is front-loaded in the first month of the period, and zero in subsequent months once the slab amount is paid.