Determine Applicable State Slab Rates

• Begin by referring to the state-specific professional tax slab structure, which varies across different Indian states.
  
• Identify the monthly tax liability per employee based on their gross salary and applicable slab.
  
• Ensure that the slab rates used are up to date, as they are subject to periodic revision.
  
• Consider exemption categories (e.g., low-income earners, senior citizens) while calculating.
  
• The tax must not exceed ₹2,500 annually per individual, as per Article 276 of the Constitution.
  

Calculate Monthly PT Deduction per Employee

• For each employee, calculate the monthly professional tax as per their income.
  
• Exclude employees who fall under non-taxable or exempt slabs.
  
• Maintain a salary-wise list of employees for each month of the quarter.
  
• Track any mid-quarter changes, such as new joiners, resignations, or salary hikes.
  
• Confirm deduction eligibility before proceeding to quarter-wise aggregation.
  

Summarize Monthly Deductions for the Quarter

• Add the monthly PT deductions for each employee to get the monthly total PT liability.
  
• Prepare a summary sheet for each of the three months in the quarter.
  
• Verify totals with payroll records and ensure that all deductions match payslips.
  
• Calculate the total quarterly PT liability by summing the three monthly figures.
  
• Adjust for any over-deductions, exemptions, or leave without pay scenarios.
  

Reconcile with Payments and Returns

• Ensure that the total quarterly liability equals the amount to be paid and reported in the quarterly return.
  
• Generate or verify the quarterly payment challan based on the calculated amount.
  
• Use the correct PTRC registration number, assessment year, and quarter while making payment.
  
• Submit the quarterly return along with employee-wise deduction details through the state tax portal.
  
• Retain payment challans and acknowledgment receipts for audit and compliance.
  

Maintain Accurate Records

• Preserve salary sheets, PT calculation statements, challans, and return filings for each quarter.
  
• These records support the employer’s tax compliance and help during inspections or audits.
  
• Use payroll software or automated spreadsheets for error-free calculation and reporting.
  
• Regularly review compliance to avoid late fees, penalties, or legal issues.
  
• Ensure timely filing and payment to maintain a clean PT compliance status.