Code on Wages, 2019 / Employees' Provident Funds & MP Act, 1952 / ESI Act, 1948 / the corresponding section of the Income-tax Act, 2025 (formerly Section 192 of Income-tax Act, 1961)

Managed Payroll & HR Compliance Outsourcing

End-to-end managed payroll processing, gross-to-net salary calculations, EPF & ESIC monthly challan filing on Shram Suvidha, Form 16 issuance, and salary TDS withholding under the corresponding section of the Income-tax Act, 2025.

CA Due Diligence

Official Portal Filing

State Stamp Advisory

Managed Payroll & HR Compliance Outsourcing Statutory Advisory

Statutory Filing

MCA & Tax Practice

Relevant RegulatorMinistry of Labour and Employment (MoLE), EPFO, ESIC & Central Board of Direct Taxes (CBDT)

shramsuvidha.gov.in

External link to the official website of the relevant authority. H A V N & COMPANY is not affiliated with any government authority.

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STATUTORY OVERVIEW

Managed SME Payroll Processing, Social Security Remittances & Labor Compliance

For expanding enterprises and mid-market employers, running monthly payroll is far more than disbursing net salaries into bank accounts. Employers must navigate complex central and state statutory deductions: Employees' Provident Fund (EPF), Employees' State Insurance (ESIC), state-specific Professional Tax (PT), Labour Welfare Fund (LWF), and salary TDS withholdings under the corresponding section of the Income-tax Act, 2025 (formerly Section 192 of the Income-tax Act, 1961). Delayed statutory remittances beyond the 15th of the month trigger severe damages, compounding interest, and permanent expense disallowances under Section 36(1)(va) of the Income-tax Act. Our managed payroll service delivers automated gross-to-net computations, pay slips, and unified statutory remittances.

Statutory & Practice Summary • At-A-Glance

ICAI UDIN Authentication Mandate

Governing Framework

Code on Wages, 2019 / Employees' Provident Funds & MP Act, 1952 / ESI Act, 1948 / the corresponding section of the Income-tax Act, 2025 (formerly Section 192 of Income-tax Act, 1961)

Regulatory Authority

Ministry of Labour and Employment (MoLE), EPFO, ESIC & Central Board of Direct Taxes (CBDT)

Professional Assurance

Chartered Accountants Attestation under ICAI Standards & Code of Ethics

DOCUMENTATION MATRIX

Mandatory Documents Checklist

Self-attested scanned copies required

1. Promoters / Partners / Directors KYC

✓Monthly Attendance Sheets, Biometric Access Punch Logs & Leave Summaries
✓Employee Master List (Full Name, Date of Joining, Designation, PAN, Aadhaar, Bank Details)
✓CTC Structure Breakdown (Basic, HRA, Special Allowance, PF Employer/Employee Share)
✓Employee Investment Declarations & Supporting Receipts (Form 12BB Verification)

2. Registered Office & Premises Proof

✓Company EPF & ESIC Establishment Registration Codes on Shram Suvidha Portal
✓State-Specific Professional Tax (PT) Registration Certificate & Employer Code
✓Quarterly Salary TDS Deduction Ledgers & Previous Form 24Q Acknowledgments
✓Employment Contracts, Offer Letters & Bonus / Incentive Policy Documentation

PROCEDURAL ROADMAP

Step-by-Step Filing & Approval Process

Structured execution roadmap managed by our Chartered Accountants from pre-filing due diligence to certificate allotment.

01Standard

Attendance Cut-Off & Input Verification

Receiving monthly attendance logs, new joiner profiles, resignations, and variable incentive approvals by the 25th of the month.

02Standard

Gross-to-Net Computation & Review

Computing PF, ESI, PT, and salary TDS deductions, preparing draft payroll registers for management sign-off.

03Standard

Bank Payout & Payslip Distribution

Delivering bank disbursement advice sheets and emailing password-protected digital payslips directly to employees.

04Standard

Statutory E-Challan Generation & Deposit

Generating and filing EPF ECR, ESIC challans, PT returns, and TDS challans on official government portals before the 7th/15th deadline.

Gross-to-Net Processing & Digital Payslip Automation

Practice Scope & Statutory Guidance

We compute monthly employee compensation packages, factoring in attendance registers, biometric logs, leave balances, overtime, bonuses, commissions, and reimbursements. We generate encrypted, password-protected electronic payslips and prepare bank disbursement advice sheets compatible with all major corporate net banking platforms.

Monthly EPF, ESIC & Professional Tax E-Challans

Practice Scope & Statutory Guidance

We compile and upload monthly Electronic Challan-cum-Returns (ECR) on the official EPFO portal (epfindia.gov.in) and monthly contribution challans on the ESIC portal (esic.gov.in) via the unified Shram Suvidha system (shramsuvidha.gov.in). We manage universal account number (UAN) generation, employee KYC seeding, and state-wise Professional Tax filings.

Salary TDS Withholding & Form 16

Practice Scope & Statutory Guidance

Under the corresponding section of the Income-tax Act, 2025 (formerly Section 192 of the Income-tax Act, 1961), employers must deduct tax at source on estimated employee taxable income. We verify employee investment proofs submitted in Form 12BB (HRA, housing loan interest, Chapter VI-A deductions), file quarterly Form 24Q returns on incometax.gov.in, and generate digitally signed Form 16 Part A and Part B certificates from TRACES.

STATUTORY MATRIX

Statutory Provisions & Regulatory Comparative Matrix

Comparative analysis of governing sections under the new framework alongside legacy statutory references.

Statutory Payroll Deduction	Statutory Act & Section (2025 vs 1961)	Applicable Contribution Rate / Floor	Mandatory Monthly Deadline & Portal
Salary TDS Withholding	The corresponding section of the Income-tax Act, 2025 (formerly Section 192 of 1961 Act)	Average rate basis based on taxable income slabs and Form 12BB proofs	7th of following month / https://www.incometax.gov.in/
Employees' Provident Fund (EPF)	EPF & MP Act, 1952 / Code on Wages	12% Employee + 12% Employer (Wage ceiling Rs. 15,000 / higher basic)	15th of following month / https://www.epfindia.gov.in/
Employees' State Insurance (ESIC)	Employees' State Insurance Act, 1948	0.75% Employee + 3.25% Employer (Gross wage limit Rs. 21,000/month)	15th of following month / https://www.esic.gov.in/
Professional Tax (PT)	State Tax on Professions Acts	State-specific slabs (typically Rs. 200 to Rs. 2,500 annually)	State Treasury Portals (Monthly / Quarterly)

ONGOING GOVERNANCE

Mandatory Post-Registration Compliances

Failing to complete statutory post-incorporation actions carries steep daily penalties. Our CA firm manages continuous compliance:

CompliancePeriodic

Monthly EPF & ESIC Challan Deposit

Mandatory electronic deposit of PF and ESI contributions on epfindia.gov.in and esic.gov.in on or before the 15th of every month.

CompliancePeriodic

Monthly Salary TDS Challan (ITNS 281)

Electronic remittance of deducted salary TDS on incometax.gov.in on or before the 7th of the following month.

CompliancePeriodic

Quarterly TDS Return (Form 24Q)

Electronic filing of quarterly salary withholding returns on the Income Tax portal by the 31st following each quarter-end.

CompliancePeriodic

Annual TRACES Form 16 Issuance

Downloading and issuing digitally signed Form 16 Part A & Part B to all employees on or before June 15 following the financial year.

FREQUENTLY ASKED QUESTIONS

Statutory FAQs & Practical Guidance

Frequently asked questions and procedural guidance regarding Managed Payroll & HR Compliance Outsourcing.

What are the employer TDS responsibilities under the corresponding section of the Income-tax Act, 2025?

Under the corresponding section of the Income-tax Act, 2025 (formerly Section 192 of the Income-tax Act, 1961), any employer responsible for paying salaries must deduct tax at source on estimated employee taxable income at average rates. The employer must collect investment declarations and proofs in Form 12BB, deposit the tax monthly via Challan ITNS 281 by the 7th, file quarterly Form 24Q returns on incometax.gov.in, and issue Form 16 by June 15.

What happens if employee EPF or ESIC contributions are deposited late?

Under Section 36(1)(va) read with Section 43B of the Income-tax Act, if the employee's share of EPF or ESIC is deposited after the statutory due date (15th of the following month), the deduction is permanently disallowed, and the amount is added back to taxable profits. Furthermore, the employer faces compensatory interest under Section 7Q and damages up to 100% under Section 14B of the EPF Act.

What is the wage ceiling for mandatory EPF and ESIC coverage?

For EPF, membership is mandatory for employees with basic wages plus DA up to Rs. 15,000 per month (though employers and employees may voluntarily contribute on higher wages). For ESIC, coverage is mandatory for employees earning gross wages up to Rs. 21,000 per month (Rs. 25,000 for persons with disabilities).

Can your managed payroll service generate bank upload files?

Yes, we generate direct bank payout files compatible with all corporate banking portals (SBI, HDFC Corporate NetBanking, ICICI CIB, Axis, Kotak), enabling single-click salary disbursement to all employees simultaneously.

STATUTORY ADVISORY DESK • PRACTICE INQUIRIES

Statutory Inquiries & Practice Advisory

Information on Managed Payroll & HR Compliance Outsourcing is provided for general reference. Office addresses and contact details are listed on the Contact page.

Contact Practice Office +91 99140-14949