From salary computation to PF, ESI, PT, and TDS filings β Acculex manages your complete payroll cycle so your employees are paid correctly and every statutory deduction reaches the government on time.
Payroll seems simple β pay your employees on time. But the reality is far more complex. Every salary involves: income tax (TDS) computation under the new/old tax regime, PF deduction at 12%, ESI deduction (if applicable), Professional Tax as per the state, gratuity calculations, reimbursements, allowances, and accurate Form 16 at year-end. Get any of these wrong and you face: employee disputes, departmental notices, TDS mismatch demands, and penalties.
TDS on salary not deposited by the 7th of every month = 1.5% per month interest + βΉ200/day late fee. PF not remitted by the 15th = 12% interest + damages up to 25%. ESI not remitted by the 15th = 12% interest + penalty. Wrong tax regime selected for employee = demand + interest on shortfall. Form 16 errors = employee scrutiny notices. All of these are completely avoidable with professional payroll management.
Calculation of gross salary, allowances (HRA, conveyance, LTA), deductions (loan EMI, advance recovery), and net take-home pay for each employee. Includes reimbursements and variable pay components.
Monthly TDS computation for each employee under the applicable tax regime (new or old). Annual projection at the start of year. Declarations collected from employees. TDS deposited by the 7th. Challan copies maintained. TRACES reconciliation done quarterly.
EPF deduction at 12% of basic+DA (employee) and 12% employer contribution. ECR (Electronic Challan cum Return) generated and submitted by the 15th. UAN management, KYC linking, and online PF portal updates. PF returns (EPFO) filed monthly.
ESI applicable for employees with gross salary β€ βΉ21,000/month. Employee: 0.75%, Employer: 3.25%. Monthly remittance by the 15th. Half-yearly ESI returns filed on ESIC portal. Contribution cards and IP number management.
State-specific PT computation and deduction. Applicable states: Gujarat, Maharashtra, Karnataka, AP, Telangana, Tamil Nadu, WB, and others. Monthly/annual PT challan payments. PT registration and return filing as applicable per state.
Professionally formatted monthly payslips for every employee β showing gross pay, all allowances, all deductions (TDS, PF, ESI, PT, loans), and net pay. Distributed digitally via email or employer portal. Password-protected for confidentiality.
Quarterly TDS return filing on TRACES for all salaried employees β Form 24Q. Includes: salary details, PAN, tax deducted, and regime selection. Due dates: Q1: July 31, Q2: Oct 31, Q3: Jan 31, Q4: May 31. Corrections filed promptly if needed.
Part A of Form 16 (TDS certificates) downloaded from TRACES and Part B (salary details + deductions claimed) prepared for every employee. Issued by 15th June after each financial year. Employees use Form 16 directly for their ITR filing.
When an employee exits β calculation of notice period pay, leave encashment, gratuity (Section 4(1) Payment of Gratuity Act β 15 days for each completed year of service), and final TDS computation on the F&F amount. No disputes, no delays.
| Compliance | Rate / Details | Due Date | Penalty for Late |
|---|---|---|---|
| TDS on Salary Deposit | Per income tax slab (Section 192) | 7th of next month (March: 30th April) | 1.5% per month interest + βΉ200/day late return fee |
| PF (Provident Fund) Deposit | Employee 12% + Employer 12% of Basic+DA | 15th of next month | 12% interest + damages 5%β25% depending on delay period |
| ESI (Employee State Insurance) | Employee 0.75% + Employer 3.25% of gross | 15th of next month | 12% simple interest p.a. + penalty |
| Professional Tax | State-specific slabs (e.g., Gujarat: βΉ200/month for salary β₯ βΉ12,000) | Monthly/Annual as per state | State-specific penalties |
| Form 24Q (TDS Return) | Quarterly β all salaried employees | Q1: 31 Jul | Q2: 31 Oct | Q3: 31 Jan | Q4: 31 May | βΉ200/day + minimum βΉ10,000 |
| EPFO ECR Monthly Return | PF + EPS breakup for all employees | 15th of next month | Damages chargeable on delayed payment |
| ESI Half-Yearly Return | Contribution details β May & Nov | 11 November & 11 May | Penalty under ESI Act |
| Form 16 Issue | Annual TDS certificate for employees | 15th June (annually) | βΉ100/day for non-issuance |
Every employer must compute TDS on salary based on the tax regime selected by each employee. The new tax regime is the default from FY 2023β24 β employees must specifically opt for the old regime by submitting a written declaration to the employer.
Standard deduction: βΉ75,000
Basic exemption: βΉ4,00,000
Section 87A rebate: up to βΉ60,000 (income β€ βΉ12L)
No deductions: 80C, HRA, home loan, 80D
NPS employer contribution (80CCD(2)) β allowed
Lower slab rates β 30% starts at βΉ24L
Standard deduction: βΉ50,000
HRA exemption β if paying rent
Section 80C: up to βΉ1.5L
Home loan interest: up to βΉ2L
80D (health insurance): up to βΉ1L
LTA exemption β permitted
30% rate from βΉ10L
At the start of each financial year (and when a new employee joins), we compute the estimated tax under both regimes based on the employee's salary, investments, and declarations β and recommend which regime saves more tax. This prevents over-deduction (unhappy employees) or under-deduction (year-end demands). Employees can change their regime declaration once during the year.
Complete employee database created: CTC structure, bank account details, PAN, UAN (PF), ESI IP number, tax regime, investment declarations, loan deductions, and allowance breakup. Typically done once at the start of the engagement and updated when new employees join.
You share: attendance/leaves for the month, variable pay (incentives, bonuses), reimbursements, loan deductions, any salary revisions, and new joiners/exits. We accept data in any format β Excel, Google Sheets, or HR software export.
Gross salary computation for each employee. TDS computed under the applicable regime with year-to-date reconciliation. PF, ESI, PT deductions computed. Loans and advance recoveries applied. Net salary calculated. Payroll register prepared for your approval.
Payroll statement shared with you (employer) for approval β showing each employee's gross pay, all deductions, and net pay. Upon your approval, salary transfer instructions prepared (bank transfer advice). Payslips generated and dispatched to employees.
TDS deposited by the 7th via Challan 281. PF ECR generated and paid by 15th on EPFO portal. ESI challan paid by 15th. PT challan as per state schedule. All payment proofs maintained. Quarterly Form 24Q TDS returns filed. Annual Form 16 generated and issued by June 15th.
EPF is mandatory for all employees whose basic wages do not exceed βΉ15,000/month if the establishment has 20 or more employees. Employees earning above βΉ15,000 can voluntarily join. Employers with fewer than 20 employees are generally not covered β but can voluntarily register. Once an employee is in EPF, they remain covered even if their salary subsequently exceeds βΉ15,000 β their contributions are on the βΉ15,000 cap for EPS calculation. Our team determines exact applicability for your workforce.
No β ESI applies only to employees with gross monthly salary of βΉ21,000 or less (βΉ25,000 for employees with disabilities). If an employee's salary crosses βΉ21,000 during the year (e.g., due to an increment), they continue contributing until the end of the current contribution period (AprilβSeptember or OctoberβMarch) and then go out of the ESI system. We track this cycle proactively and update ESI contributions each period.
Form 16 Part A is the official TDS certificate downloaded from the TRACES portal β it shows employer details, employee PAN, tax deducted and deposited quarter-by-quarter. It has a unique certificate number and must be downloaded from TRACES (not self-generated). Form 16 Part B is prepared by the employer β it shows the complete salary breakup, exemptions claimed (HRA, LTA), deductions under Chapter VI-A (80C, 80D), net taxable income, and tax computation. Both parts together form the employee's official Form 16, which they use to file their ITR.
Yes β we handle TDS on contract payments under Section 194C (individuals: 1%, companies: 2%), TDS on professional fees under Section 194J (10%), and any other applicable TDS sections. We include these in your quarterly TDS return (Form 26Q) and issue Form 16A (TDS certificate for non-salary payments) annually. Contract workers and freelancers are not in the PF/ESI system unless specifically covered.
Complete payroll management β computation, PF, ESI, PT, TDS, payslips, Form 16. Never miss a deadline again. Pricing based on number of employees.