How is Professional Tax handled for previous employment and mid-cycle location transfers?

The client identified discrepancies in Professional Tax (PT) calculations in the following cases:

1. An employee had declared PT under Previous Employment Income.
2. Three employees were transferred from Bangalore to Chennai during an ongoing PT cycle, after already paying PT in Bangalore.

Why Does the Difference Occur?

Keka's PT calculation considers the applicable state/location PT rules and the payroll information available in the system.

Therefore, in cases involving previous employment PT or mid-cycle location transfers, the system-calculated PT may differ from the client's expected calculation.

Solution

Keka does not provide an option to change the standard PT calculation logic for these specific cases.

If the required PT amount differs from the system-calculated amount, the client can manually override the PT amount for the concerned employees based on their payroll team's calculation.

For example, if an employee moves from Bangalore to Chennai during the PT cycle and has already paid PT in Bangalore, the client can calculate the applicable Chennai PT amount and update it using the PT Override.