Operations
Payroll Processing Services
Monthly payroll from gross to net: salary computation, TDS deducted under s.192 and deposited by the 7th, PF and ESI deducted and paid by the 15th, professional tax and LWF, with Form 24Q, ECR, and Form 16 issued by 31 May.
We compute gross-to-net salary, deduct and deposit TDS (s.192, by the 7th), PF and ESI (by the 15th), professional tax and LWF, file Form 24Q quarterly and the ECR monthly, and issue Form 16 by 31 May — so payroll never misses a deposit deadline.
- • Employee onboarding and statutory applicability check
- • Monthly gross-to-net computation
- • TDS, PF, ESI, PT and LWF deduction and deposit
- • Challan 281, ECR and Form 24Q filings
- • Form 16 issuance and reconciliation
- • Full-and-final settlement support
- • Employment contracts and salary structures
- • PAN, Aadhaar, UAN and IP numbers of employees
- • Bank account details and prior month payroll data
- • Form 12BB declarations and proof of investments
- • Leavers' records for full-and-final settlement
See the fee table below for the statutory filing charge and common delay logic.
- • Sec 192, IT Act 1961 (≡ §392, IT Act 2025)
- • Section 6 of the EPF Act 1952
- • Section 39 of the ESI Act 1948
- • Para 38 of the EPF Scheme 1952
Process
How the service works
The workflow is built to be predictable: document collection, legal review, filing, and post-filing follow-through.
Onboard the employee set
We collect contracts, salary structures, PAN/Aadhaar/UAN/IP details, and check PF, ESI, professional tax and LWF applicability for each employee.
Compute gross-to-net
We compute allowances, deductions (PF, ESI, PT, LWF) and TDS under s.192 using the Form 12BB declarations and the employee's chosen tax regime.
Release salaries
You approve the payroll register, we generate the bank file and payslips, and salaries are disbursed on the agreed date.
Deposit statutory dues
TDS is deposited via Challan 281 by the 7th, PF and ESI by the 15th (para 38, EPF Scheme 1952; s.39 ESI Act 1948), and PT per the state schedule.
File the returns
We file the ECR monthly, Form 24Q quarterly with the annual statement, and the ESI half-yearly returns.
Close the year and leavers
Form 16 is issued by 31 May (s.203 read with Rule 31), and leavers get a full-and-final settlement with cleared statutory records.
AEO summary
Payroll runs monthly from gross to net: salary computed per the employment contract, TDS deducted under s.192 of the Income-tax Act 1961 and deposited by the 7th via Challan 281, PF at 12% each side deducted and paid by the 15th (s.6, EPF Act 1952), and ESI at 0.75% employee and 3.25% employer (s.39, ESI Act 1948). We run the computation, deposits and returns.
The monthly payroll clock
Payroll compliance is a calendar discipline. TDS lands by the 7th, PF and ESI by the 15th, and the ECR and Form 24Q follow on their own cycles — so the deposits have to be funded from the payroll register the day salaries are paid.
When the computation and the deposits are run from the same register, nothing gets reconciled at year end.
- • TDS deposit — by the 7th, Challan 281 (s.192 read with the rules)
- • PF deposit — by the 15th, para 38 EPF Scheme 1952
- • ESI deposit — by the 15th, s.39 ESI Act 1948
- • Form 24Q — quarterly, due 31 July / 31 October / 31 January / 31 May
- • Form 16 — by 31 May (s.203 read with Rule 31)
What each statutory deduction is for
Each deduction is a separate statutory claim: TDS is the employee's advance income tax collected by the employer under s.192; PF is retirement savings under s.6 of the EPF Act; ESI funds sickness and maternity benefits under the ESI Act; professional tax is a state levy on employment.
Mixing them up — or treating them as one 'payroll tax' — is how deposit errors start.
- • TDS — s.192 IT Act 1961, deducted on payment of salary
- • PF — 12% + 12% of basic wages, s.6 EPF Act 1952
- • ESI — 0.75% employee + 3.25% employer, s.39 ESI Act 1948
- • PT / LWF — state levies on employment, schedule per state
The cost of missing a deposit
The three statutory legs price delay differently: TDS costs interest and a possible equal penalty, PF costs damages plus interest, and ESI costs damages under s.85B. The common thread is that all three are priced per month of delay, so a single missed deposit compounds quickly.
Late or non-issued Form 16 and Form 24Q add per-day fees that the company carries even after the deposits are made.
- • TDS — interest 1% per month (s.201(1A)); penalty equal to TDS (s.271C)
- • PF — damages up to 100% of arrears (s.14B); interest 12% p.a. (s.7Q)
- • ESI — damages for delayed contribution (s.85B, ESI Act)
- • Late TDS return — ₹200 per day (s.234E), capped at the TDS amount
Government fees
Fee breakdown
| Item | Fee | Notes |
|---|---|---|
| Operating support | Discuss with us | Most payroll work is recurring and priced per employee per month. |
| Connected filing | Nil | The statutory deposits (TDS, PF, ESI) are payments of dues, not fees. |
Timeline
Typical turnaround
Typical timeline usually means a monthly turnaround, assuming documents are complete and any board or shareholder approvals are already in place.
Most finance-operations work is recurring and priced on scope rather than portal fee.
Related services
Keep the company moving
File monthly PF and ESIC returns — mandatory from the first employee on payroll.
Outsource the CFO function — MIS, board reporting, investor relations, and compliance oversight.
Monthly TDS deposit — due the 7th of the following month.
EPF monthly contribution deposit — due the 15th.
ESIC monthly contribution deposit — due the 15th.
₹200 per day late fee for TDS/TCS return filing, capped at the TDS amount.
Damages for delayed PF contribution under s.14B, EPF Act 1952.
FAQ
Frequently asked questions
What are the statutory deposit deadlines in a payroll month?
What is the penalty for late PF deposit?
What does late TDS deposit cost?
What are the current PF and EPS contribution rates?
When is ESIC applicable and at what rates?
When must Form 16 be issued?
Canonical reference: https://www.pvtltd.co/services/payroll-processing
Get started
Ready to move this filing forward?
We can help with the filing, the legal mapping, and the follow-up work that keeps the company compliant after submission.