Yes, the profession taxes are defined and applicable at state government level in India. A person earning an income from salary or from professional income are required to pay professional tax. Different states have different rates and methods of collection. HivePayroll provides the tax calculation facility based on the state selected from drop down in “Locations” configuration. Follow following steps to setup location for professional tax:
Step 1: Click on the Locations link in left hand side menu on the screen.
This will take you to following screen.
Step 2: Click on “Create” button to add new location. To edit or delete and existing location, click on the “Edit / Delete” link. This will take you to the following screen.
Complete your office location on this screen. Select State from the dropdown to apply the professional tax rules from the state. Press “Submit” button to save the location.
Step 3: Assign an employee to the location for professional tax: Add above created location to the employee in Employee -> Professional -> Edit -> Location and press “update” button to save the location.
