India Payroll Compliance: PF, ESI, TDS and Form 16 Without the Headache
Running compliant payroll in India means hitting a monthly rhythm of deductions, deposits and filings. Here's the cycle, demystified.
India payroll isn't hard because any single step is complex — it's hard because there are several, every month, each with its own deadline. Miss the rhythm and interest and penalties follow. Here's the cycle.
The monthly rhythm
- TDS: deduct income tax from salaries and deposit it with the government, then report it in the quarterly return (Form 24Q).
- Provident Fund: deduct and deposit employee and employer PF, and file the monthly ECR.
- ESI: for eligible employees, deduct and deposit contributions and file the return.
- Professional Tax: deduct and remit per the applicable state's schedule.
- Payslips: issue compliant payslips and maintain registers.
The year-end layer
At year end, employees submit investment proofs, tax is trued up, and you issue Form 16 (the salary and TDS certificate) alongside the final quarterly Form 24Q. Getting the monthly TDS right all year makes year-end painless; getting it wrong makes it a scramble.
Where a platform (or an EOR) helps
A good payroll platform calculates deductions, generates payslips, and produces the filings and Form 16 automatically — turning a manual, deadline-driven process into a monthly approval. Through an EOR, it's handled end to end: you approve, and compliance takes care of itself.
Whether you run it yourself on our HRMS or hand it to us entirely, the goal is the same — payroll that's correct, on time, and boring, in the best possible way.
