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Professional Tax
This app enables automated Professional Tax calculation in the Salary Slip based on custom formulas defined at the state level.

Publisher

IBSL IT

Supported versions

Version 15, Version 14

Categories

Free
Integrations

E-Commerce

About

This app enables automated Professional Tax calculation in ERPNext based on custom formulas defined at the state level.

⚠️ Problem Statement

  • Manual Setup: ERPNext’s default payroll requires Professional Tax to be added manually in each Salary Structure. There is no built-in calculation logic tied to state-specific rules.
  • Error-Prone: Hand-entering tax slabs or amounts is very error-prone. A misplaced figure or outdated slab can lead to incorrect deductions. Even small payroll errors can have significant financial consequences.
  • Compliance Risk: Every state has its own PT schedule (e.g., Maharashtra’s monthly slabs), and these rates change periodically. Failing to update a slab table or formula can result in non-compliance and penalties. Keeping multiple rate tables in sync manually is difficult and risky.
  • State Variability: ERPNext’s standard payroll does not easily support multiple state-level rules. Out-of-the-box, each state or region would need separate salary structures or custom scripting to account for its PT calculations, making maintenance cumbersome.

✅ Our Solution

  • Introduce a custom “State” doctype with a child table to define per-state, slab-based PT formulas.
  • Add a “State (PT)” link field on Employee so each employee is tied to their state’s formula table.
  • On Salary Slip validation, automatically evaluate the appropriate PT formula (using safe_eval) and insert the “Professional Tax” deduction.
  • Maintain all PT rules in the ERPNext UI—no code changes needed when state rates change.

🔧 Features

  • State-wise PT Configuration: Define dynamic tax slabs per state using Python-style formulas in a custom “State” doctype.
  • Employee-State Linking: Automatically associate each employee with their state’s PT rules via a custom State field on the Employee doctype.
  • Auto Tax Deduction: On Salary Slip creation (manual or via Payroll Entry), the app calculates and injects the correct “Professional Tax” deduction line.
  • Safe Formula Evaluation: Uses Frappe’s safe_eval to securely evaluate any valid slab or conditional expression.
  • Fully Configurable from UI: Update or add new PT formulas through the ERPNext interface—no code changes required.
  • Standalone & Lightweight: No dependency on India Compliance or other external apps—simply install and configure.

✅ Version Compatibility

ERPNext VersionFrappe VersionCompatibility
v14.xv14.x✅ Fully Compatible
v15.xv15.x✅ Fully Compatible

⚙️ Setup Instructions

📊 Formula Example

```python 0 if grosspay <= 7500 else 175 if grosspay <= 10000 else 200```

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