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Zoho Payroll

Professional Tax Slab

A Professional Tax Slab in Zoho Payroll is the state-defined salary band and corresponding monthly PT deduction amount, configured per state to ensure correct PT computation for each employee.

A Professional Tax Slab in Zoho Payroll is the configuration table that maps monthly gross salary ranges to the applicable PT deduction amount for a specific state. For example, Maharashtra’s slab specifies Rs 0 for gross below Rs 7,500, Rs 175 for Rs 7,500 to Rs 10,000, and Rs 200 for above Rs 10,000 (with Rs 300 in February). Zoho Payroll maintains these slabs per state and applies them automatically.

Configuring PT Slabs in Zoho Payroll

Zoho Payroll comes pre-loaded with PT slabs for all major PT-levying states. Admins can view and update slabs under Settings > Statutory Components > Professional Tax. When a state government revises its PT rates or thresholds, the slab table must be updated in Zoho Payroll to ensure correct deductions going forward.

How PT Slabs Are Applied

During a pay run, Zoho Payroll checks each employee’s monthly gross salary and their work state. It looks up the applicable PT slab row for that state and gross range, and applies the corresponding deduction. Employees with gross below the lowest slab threshold incur no PT. The deduction is shown on the payslip as ‘Professional Tax’.

PT Slab Changes and Compliance Risk

When states revise PT slabs, employers must update the system promptly. Late updates result in under-deduction, creating a liability for the employer to make good the shortfall. Zoho Payroll does not auto-update PT slabs when governments revise rates; the admin must manually update and verify the new slab before the next pay run.

Example: Karnataka PT slab for gross Rs 15,001 to Rs 20,000 is Rs 150 per month. For gross above Rs 20,000, it is Rs 200 per month. An employee in Bengaluru earning gross Rs 22,000 has PT deducted at Rs 200. Zoho Payroll looks up the Karnataka slab table and applies Rs 200 automatically.
What is a Professional Tax Slab in Zoho Payroll?

A Professional Tax Slab in Zoho Payroll is a state-specific salary band and PT amount table that determines how much PT to deduct from each employee per month. Zoho Payroll applies the correct slab based on the employee’s work state and monthly gross salary automatically during each pay run.

How do I update PT slabs in Zoho Payroll when a state revises rates?

Go to Settings > Statutory Components > Professional Tax in Zoho Payroll. Select the relevant state and edit the slab values to reflect the revised rates. Save the changes before initiating the next pay run so the new rates apply from the correct month.

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