Professional Tax for ERPNext

A lightweight app to automate Professional Tax (PT) calculations in ERPNext using state-specific, formula-driven rules.

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Problem Statement

• ERPNext lacks built-in, state-specific Professional Tax (PT) calculation based on dynamic slabs.
• Manually entering PT amounts for each employee is error-prone and time-consuming.
• State PT rates change frequently; manual updates risk non-compliance.

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.

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⚙️ Setup Instructions

1. Define State & Formula Go to State and create a new record (e.g., “Maharashtra”).

In the Formula child table, add a row for each PT slab:

Component: “Professional Tax”

Formula: Python expression using gross_pay and start_date (e.g.,0 if gross_pay <= 7500 else 175 if gross_pay <= 10000 else (200 if getdate(start_date).month != 2 else 300))

Submit the State record (only submitted states appear for employees).

2. Assign State to Employee Open an Employee record.

In the State (PT) link field, select a submitted State (e.g., “Maharashtra”).

Save (and submit if needed).

3. Automatic PT Calculation on Salary-Slip via Payroll or Manually.