Introduction

Profession Tax (PT) is a statutory deduction levied by various Indian states on employees earning income through salary.

Since the deduction rates and applicability of PT vary across states, it becomes essential for organisations with a pan-India presence to configure PT deductions accordingly.

uKnowva HRMS offers flexibility in managing this tax in two different ways: either by manually editing PT as part of the basic salary structure or by using the in-built Profession Tax Deduction plugin.

This article explains both methods in detail to help HR managers ensure accurate, state-wise PT compliance for all employees in the system.

Step 1: Configure the Profession Tax Deduction Plugin in uKnowva HRMS

To start using the automated Profession Tax Deduction plugin, log in to your uKnowva instance and click on your profile icon located at the top-right corner of the page.

From the dropdown menu, select the uKnowva Configuration option.

This will redirect you to the configuration panel, where various setup options are available. From the left-hand side menu, locate and click on the Plugin Manager option.

You will see a list of available plugins here.

Either scroll through the list or use the search bar to look for the Profession Tax Deduction plugin.

Once located, click on it to open a pop-up window that allows you to configure the settings required for automated professional tax deductions.

Inside the plugin configuration pop-up, you will need to define several fields.

Begin by entering the PT Label, which is a custom label you wish to assign for the profession tax component.

Next, select the State for which the PT rules are to be applied. If your organisation operates in multiple states, you can enable the setting that allows PT to be calculated based on the employee’s current location.

For this setup to work accurately, you must also specify the profile field from the employee’s record where the state or location is stored.

In case this field is not available or not filled out, the system will fall back on the default PT deduction value, which you must also specify.

This ensures that no employee is left without an applicable deduction even if location data is missing.

Additionally, you can configure group-based exclusions by selecting the user groups that should not be subjected to PT deduction.

For advanced scenarios, there is also an option to apply exclusion using custom code, which is primarily intended for developers, and another option for excluding the salary components from the Professional tax calculation.

After all necessary details are entered, click the Save button to activate the configuration. If you change your mind or wish to discard the settings, you can click on Cancel instead.

Step 2: Add Profession Tax to the Salary Structure Manually

If you prefer not to use the plugin or if you wish to have manual control over the PT deduction, you can add the profession tax component directly to an employee’s salary structure.

To do this, start by clicking on the HR menu in the left-hand navigation panel. From the list of sub-menus, select Payroll, which will expand into additional sub-menus.

From this list, click on Salary Structure.

This action will open a new interface where all existing salary structures are listed with headers like Name, Action, Total Earnings, Total Deductions, Total Salary, Status, Created By, Created On, Modified By, and Modified On.

Find the salary structure where you wish to add the PT component. You can scroll through the list manually or use the search bar for quicker access.

Once located, click on the pen icon under the Action column to open the structure editor.

This will load the current salary structure in a new interface.

Scroll down to the Deductions section.

Here, click on the plus (+) icon to add a new deduction row.

In the first field, labeled as Select Head, choose Profession Tax from the dropdown list.

After selecting the head, you can define the component further by entering the formula or a fixed amount for deduction.

Depending on your policy, you can either specify a fixed amount or use a formula that calculates the tax based on salary brackets or other variables.

Then, under the Show in Payslip column, select either Yes, No, or Show if applicable based on whether you want this component to be visible on the employee's payslip.

In the Calculate Attendance Basis column, you can also define whether this deduction should be calculated in proportion to the employee’s attendance by selecting Yes or No from the drop-down menu.

Once you have filled in all the required fields, scroll to the bottom of the page and click on the Save button to apply the changes.

If you wish to discard the modification, simply click on the Cancel button.

Conclusion

That’s it!

You’ve now successfully learned how to add different state-level profession tax in uKnowva HRMS.

Whether you choose to use the automated plugin or manually insert PT as a deduction in the salary structure, both methods help ensure that your organisation complies with varying state-level taxation rules.

These flexible options allow you to manage PT deductions efficiently, with the added ability to apply location-based logic or exclude specific user groups when necessary.

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