Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The four core deductions
Running payroll means handling four statutory items: PF (12% on basic+DA, where the establishment is covered), ESI (for employees up to ₹21,000/month in covered units), Professional Tax (in states that levy it), and TDS on taxable salary under Section 192.
Each has its own rhythm
They differ in who is covered, the rate, the deposit date and the return — PF and ESI by the 15th, TDS by the 7th, PT per state. Missing any attracts its own interest and penalty (PF damages, TDS interest, PT penalty). So payroll compliance is really four parallel calendars, not one. Applicability depends on headcount, wages and state — confirm yours.
A worked example
Example: a 15-employee company in Maharashtra deducts PF and ESI (for those under the wage ceilings), Professional Tax, and salary TDS — depositing PF/ESI by the 15th, TDS by the 7th, PT monthly, and filing each return on schedule. One missed deposit can trigger penalties across a stream. A single payroll process covering all four keeps it clean. Our team can run your full payroll compliance.