Professional Tax Payment Online Kerala: Monthly Process for Employers
Professional Tax (PT) is a state-level tax on employment in Kerala. Every employer must deduct PT from employee salaries and remit it to the local body (Municipality, Corporation, or Panchayat) by the 10th of the following month. Despite being a small deduction (₹40 to ₹208 per month per employee), PT compliance is strictly enforced, and late payment attracts 12% interest per annum. This guide covers the complete online payment process, slab structure, and common pitfalls. For a complete overview of PT slabs, see our Professional Tax Kerala Guide. Use our PT Calculator for instant slab computation.
Kerala Professional Tax Slabs for 2026
| Half-Yearly Gross Income (₹) | Half-Yearly PT (₹) | Monthly Deduction (₹) |
|---|---|---|
| Up to 11,999 | Nil | Nil |
| 12,000 – 17,999 | 120 | 20 |
| 18,000 – 29,999 | 180 | 30 |
| 30,000 – 44,999 | 300 | 50 |
| 45,000 – 59,999 | 450 | 75 |
| 60,000 – 74,999 | 600 | 100 |
| 75,000 – 99,999 | 750 | 125 |
| 1,00,000 – 1,24,999 | 1,000 | 167 |
| 1,25,000 and above | 1,250 | 208 |
Monthly PT Payment Process
Step 1: Determine Applicable Slab
Calculate each employee's projected half-yearly gross earnings. The PT slab is based on half-yearly (Apr-Sep and Oct-Mar) income, not monthly salary. For new joiners mid-half-year, estimate their half-yearly earnings based on the months they will work. Use our PT Calculator for automatic slab determination.
Step 2: Deduct PT from Salary
Deduct the monthly PT amount from each eligible employee's salary before disbursement. PT is deducted on the full month's salary regardless of leave or absence. Maintain an employee-wise PT register showing: employee name, monthly gross, applicable slab, monthly PT deducted, cumulative PT deducted for the half-year, and total PT remitted.
Step 3: Generate the Payment Challan
Log into the LC Kerala portal (lc.kerala.gov.in) → "Professional Tax" → "Generate Challan." Select the month and enter employee-wise PT deduction details. The system generates a consolidated challan for the total PT deducted for all employees for that month. The PT payment deadline is the 10th of the following month (earlier than EPF and ESIC which are due on 15th, making PT the first compliance deadline each month).
Step 4: Make the Payment
Pay online through the portal via net banking, credit card, or debit card. After successful payment, the system generates a payment receipt with a transaction reference number. Save this receipt as proof of compliance — it is requested during labour inspections.
Step 5: File Half-Yearly Return
File the half-yearly PT return (Form 5A) by 31st October (for Apr-Sep period) and 30th April (for Oct-Mar period). The return summarises employee-wise PT deducted and remitted during the half-year. Late filing attracts interest and penalties.
Common PT Payment Mistakes
- Applying wrong slab: PT slabs are based on half-yearly gross, not monthly salary. Employees joining mid-year must have a slab based on projected half-yearly earnings.
- Registering with wrong local body: Register with the Municipality/Corporation/Panchayat having jurisdiction over your establishment's location.
- Missing the 10th deadline: PT deadline is 10th — earlier than EPF (15th) and ESIC (15th). Many payroll teams miss this.
- Not issuing PT certificates to exiting employees: Required for employee's ITR filing (PT is deductible under Section 16(iii)).
📊 Calculate Professional Tax Instantly
Use our Kerala PT Calculator to determine the correct slab and monthly deduction for each employee.
Open PT Calculator →Simplify PT with GHR Consultancy
GHR Consultancy manages PT compliance for Kerala businesses — registration, monthly deduction, local body remittance, half-yearly return filing, and certificate issuance. Our Payroll Services ensure you never miss a deadline or apply an incorrect slab. Contact us to streamline your PT compliance.