STATUTORY & TAX
Professional Tax
Deduct state professional tax by the employee's work state, not the head office, using each state's own slabs and payment frequency.
IN SHORT
What is professional tax?
Professional Tax
Deduct state professional tax by the employee's work state, not the head office, using each state's own slabs and payment frequency.
Statutory & Tax
PF, ESI, professional tax, TDS and gratuity calculated inside the pay run, with return and challan figures tied to what was deducted.
THE PROBLEM
What goes wrong without professional tax
These are the problems payroll teams run into when this is handled on spreadsheets and email.
One state's slab is applied to the whole workforce, over- or under-deducting employees elsewhere.
A deduction still appears for employees working in states that do not levy professional tax.
A state that collects on its own calendar is paid on the monthly calendar used for another.
An employee who moves to another state keeps the previous state's slab until someone notices.
HOW IT WORKS
Professional Tax inside a BizzField pay run
BizzField runs payroll in five steps: lock attendance, draft the register, review variance, approve, release. Here is how this capability works inside that cycle.
State-wise slabs
Each state's slab structure and exemption threshold is maintained separately.
Work-location driven
The slab follows the employee's work state, not the registered office.
State payment calendar
Treatment follows each state's own payment frequency, so the deduction and the deposit line up.
BUILT FOR INDIA
Indian statutory rules, built into the cycle
PF, ESI, professional tax and TDS are calculated inside the pay run, and state rules follow the employee's work location.
PF wage ceiling
Employee and employer provident fund computed on basic wages, respecting the statutory monthly ceiling.
ESI eligibility
Applied to employees within the gross wage limit of ₹21,000 a month, with contribution-period rules handled across the cycle.
State-wise PT
Professional tax slabs resolved by work location rather than by registered head office.
TDS & Form 24Q
Projected annual tax spread across remaining months, with quarterly Form 24Q output.
QUESTIONS
Professional Tax — Questions We Get Asked
No. It is a state subject, levied in 14+ states and union territories and nationally capped at ₹2,500 a year. BizzField deducts only where the employee's work state levies it.
It is deducted from the employee's salary and deposited by the employer with the state authority.
Yes. Separate legal entities can be run from a single console. Each entity keeps its own PF and ESI registration, its own approval chain and its own bank file.
FILES FROM THE APPROVED PAY RUN
Bank Files And Statutory Returns, Built From The Approved Register
What is paid, what is deducted and what is reported come from the same approved register, so the files are not rebuilt in Excel after the run.
BANK TRANSFER
Bank Salary Files
Key Capabilities
- Output formatted to the bank's own upload specification
- Formats for HDFC, ICICI and SBI
- A separate file per bank when employees bank with different banks
- Released amounts kept against the cycle for matching to the bank statement
The bank-format salary file is generated from the approved register, so the amount credited and the amount on the payslip come from the same source.
See Bank Transfer SupportSTATUTORY & ACCOUNTING
Statutory Return Files And Accounting Export
Key Capabilities
- PF ECR file produced from the pay run
- ESI contribution return
- Form 24Q assembled from the quarter's cycles, not re-keyed
- General Ledger export for Tally Prime and Zoho Books
The PF electronic challan-cum-return, the ESI return and quarterly Form 24Q are produced from the same figures payroll deducted. Submission stays with your finance or compliance team. Payroll can also export General Ledger data for Tally Prime and Zoho Books.
See Government ReportsCONTROL & AUDIT TRAIL
Approval Controls And A Named Audit Trail
A pay cycle is released through maker-checker approval, and every edit, override, approval, rejection and reversal is recorded against a named user and timestamp.
SEGREGATION OF DUTIES
Maker-Checker Release
Key Capabilities
- Preparer and approver are distinct roles
- Sending a cycle back to draft requires a reason that stays with the cycle
- Entities that need finance and leadership sign-off can add approval levels
The person who prepared the cycle is not the person who releases it, and both actions are recorded against named users.
See Approval WorkflowAUDIT TRAIL
Named Audit Log
Key Capabilities
- Every action attributed to a user, not a shared account
- Logs kept against the cycle they belong to
- A closed period can be reconstructed from its own log
Edits, overrides, approvals and reversals are written to the audit log against a named user and timestamp, so a closed cycle can be explained from its own record.
See Payroll Audit LogsKEEP EXPLORING
Related Pages
Other payroll capabilities teams usually evaluate alongside this one.
TDS Calculation
Project annual income, spread tax over the remaining months and re-project when declarations change, so the gap is not left for March.
ExploreTax Management
Collect investment declarations and proofs, review each proof with a reason, and apply the decision to tax under the employee's chosen regime.
ExploreGratuity Management
Track continuous service and accruing gratuity liability, then compute the payout on the statutory formula at exit.
ExploreCompliance Management
A register of each statutory obligation payroll carries, with its rate, ceiling, due date and named owner, reconciled to pay-run deductions.
ExploreSee professional tax on your own payroll data
Book a walkthrough with our Kanpur-based payroll team and run a sample cycle on your own salary structure.