Payment of Professional Tax under Payroll using TallyPrime

Professional Tax is applicable to those individuals or professionals in India who are involved in any profession or trade. The state government of each state governs and administers the levy and collection of Professional Tax in the respective State. The state is empowered with the responsibility of structuring as well as formulating the professional tax criteria for the respective state. Professional tax is charged on the income of Individuals, profits of business or gains in vocations as per the list II of the Indian Constitution.

In India, Professional Tax slabs vary from state to state and some of the states have formulated different professional tax slabs for men, women and senior citizens. The rates depend upon profession, years in the profession and the amount of income or turnover and so on.

The creation of Professional Tax Pay Head is discussed in detail in the Creation of Masters chapter and the procedure to process Professional Tax Deduction from Employee Salaries is discussed in detail in Processing Payroll in TallyPrime 4 Chapter. In this section, we will discuss the recording of transactions related to payment of Professional Tax.

EXAMPLE >>

On 30th April, 2024 M/s. Swayam Software Solutions made a payment of Professional Tax for the month of April 2024.

The same is accounted as shown:

Create Payment Voucher

Go to Gateway of Tally > Vouchers

1.            Press F5 for Payment Voucher
2.            Press F2, specify the date as 30-04-2024 and press Enter
3.            Press Ctrl+F (Payroll Auto Fill) to prefill employee payroll details
4.            In Employee Filters screen,

• • • Select Professional Tax Payment from the Process List
    • Specify 1-4-2024 and 30-4-2024 in the From and To date fields respectively
    • Specify 30-4-2024 in the Voucher Date field (This field is prefilled, if the voucher date is specified during Voucher Entry)
    • Select Primary Cost Category in the Employee Category field
    • Select All Items in the Employee/ Group field
    • Select Professional Tax in the Payroll Ledger field
    • Select Axis Bank Ltd. in the Bank / Cash Ledger field

The completed Employee Filters screen will is displayed as shown:

[92-Payroll Management using TallyPrime]

• Press Enter to accept the screen and go back to the Payment Voucher screen
• Press Enter to prefill the Professional Tax amount in the Payment Voucher

The completed Professional Tax Payment Voucher is displayed as shown:

[93-Payroll Management using TallyPrime]

5.            Press Enter to Accept.

Similarly, process the Professional Tax payments for other months.