Professional Tax Calculation in Tamil Nadu by Corporation or Panchayat

Introduction

In Tamil Nadu, Professional Tax (PT) isn’t uniform across the state. Each Corporation or Panchayat follows its own PT slab, leading to variations in how much tax needs to be deducted.

To ensure accuracy and statutory compliance, Keka now supports PT calculation based on the specific Corporation or Panchayat assigned to each employee. This update is especially useful for payroll teams managing employees across different regions in Tamil Nadu.

Steps to Configure PT by Corporation or Panchayat

1. Go to Professional Tax Settings under Filing Details in paygroup.

   

2. Add a PT location or edit an existing Tamil Nadu PT configuration.

3. In the Corporation / Panchayat dropdown, select the correct local body:

   • Chennai Corporation

   • Salem Corporation

   • Coimbatore Corporation

   • Trichy Corporation

   • Madurai Corporation

   • Tirunelveli Corporation

   • Hosur Corporation

   • Dindigul Corporation

   • Panchayat

4. Save the configuration.

   

Once saved, Keka will use the correct PT slab based on the selected Corporation or Panchayat.

How PT Is Calculated

• PT is calculated based on the Corporation or Panchayat selected for the employee’s location.

• The deduction depends on:

  • Whether PT is configured as monthly or half-yearly

  • The employee’s wages

  • Special values for March and September (for half-yearly deductions)

Half-Yearly PT Contribution Periods

• April to September – Due by 30 September

• October to March – Due by 31 March

Special Exit Case

If an employee:

• Belongs to Tamil Nadu or Kerala

• Is under half-yearly PT configuration

• And exits during a month when PT isn’t normally deducted

Then Keka will still deduct PT up to the exit month, as per statutory rules.