India Payroll Management
Accurate, On-time, Compliant
End-to-end payroll processing for your India GCC - monthly TDS computation, EPFO ECR challan by the 15th, ESIC by the 21st, Professional Tax per state, quarterly Form 24Q, and annual Form 16. All filings on time, zero penalties.
Key deadlines
By 15th
EPFO ECR deadline
By 20th
GSTR-3B deadline
By 21st
ESIC deadline
31 Oct
Form 3CEB deadline
What is included
11 payroll services - every deadline, every state, every filing
From monthly payroll processing and statutory challan filing to salary structure optimisation and parent company MIS - complete payroll management for India GCCs.
Monthly Payroll Processing
Full end-to-end payroll run every month covering all employees across states. We ingest attendance data, apply leave deductions, compute gross salary, apply all statutory deductions (EPFO, ESIC, PT, TDS), and produce a net-pay file for bank upload. Payroll is finalized by the 25th for same-month salary credit.
TDS Calculation under Section 192
TDS on salary is computed monthly for each employee under the new tax regime (Section 115BAC, default since Finance Act 2023) or old regime as declared via Form 12BB. We compute TDS projections at the start of the financial year, adjust monthly for actual investments declared, and deposit TDS by the 7th of the following month.
EPFO ECR Challan (by 15th)
The Electronic Challan cum Return must be filed and paid by the 15th of every month. It includes UAN-wise PF and EPS contribution breakdowns. Late filing attracts interest at 12% per annum (Section 7Q) and damages at 5-25% (Section 14B). We generate the ECR file, upload to the Unified Portal, and provide the payment receipt for your records.
ESIC Challan (by 21st)
ESIC monthly contribution - 3.25% employer and 0.75% employee for employees earning up to INR 21,000 gross - must be filed and paid by the 21st of each month. We calculate ESIC on eligible employees (GCC employees typically earn above the threshold, but we assess all roles), generate the challan, and maintain contribution history for ESIC card updates.
Professional Tax by State
Professional Tax is state-governed and must be calculated per the applicable slab for each employee's work location. Karnataka: INR 200/month above INR 15,000 gross. Maharashtra: INR 200/month above INR 10,000 (INR 300 in February). Telangana: INR 200/month above INR 20,000. We calculate PT per state, deduct from payroll, and remit to the respective state authority.
Form 16 & Form 24Q Generation
Form 24Q (quarterly TDS return - salary) must be filed by 31 July (Q1), 31 October (Q2), 31 January (Q3), and 31 May (Q4). Form 16 (TDS certificate for employees) Part A is generated via TRACES and Part B compiled from our payroll data. Both Form 16 parts must be issued to employees by 15 June each year.
Full & Final Settlement
When an employee resigns or is terminated, F&F settlement must include: pending salary, earned leave encashment (EL balance x last drawn basic/26), notice pay (received or paid), gratuity (if 5 or more years of service), reimbursement settlements, and TDS on F&F components. We compute and process F&F within 30-45 days of exit, as required by the Payment of Wages Act.
Salary Structure Optimisation
A well-structured CTC significantly reduces employee TDS liability under the old regime. We structure Basic (40-50% of CTC), HRA (50% of Basic for metro cities), LTA (twice in 4 years), NPS employer contribution (10% of Basic, deductible u/s 80CCD(2)), and Special Allowance. Under the new regime, most exemptions are gone but structure still matters for PF and gratuity computation.
Reimbursement Processing
Many GCCs provide tax-efficient reimbursements for internet, mobile, fuel, and books and periodicals under the old tax regime. We manage the reimbursement claim cycle - bill collection from employees, validation against CTC reimbursement limits, monthly processing, and inclusion in payslips. All reimbursements are excluded from TDS computation if valid proof is submitted.
Pay Slip Generation & Distribution
Detailed, password-protected payslips are generated for every employee every month, showing gross earnings, all statutory deductions (EPFO, ESIC, PT, TDS), net pay, and year-to-date TDS. Payslips are distributed via secure email or self-service portal. Format is pre-configured to match parent company MIS requirements.
Payroll MIS Reports for Parent Company
Monthly Payroll MIS reports are generated in your parent company's preferred format - including headcount by department, CTC by band, employer cost summary (salary + EPFO + ESIC + gratuity provision), variance analysis, and accrual summaries for IFRS/US GAAP group reporting. Delivered in Excel and PDF formats by the 5th of each month.
Coverage
Payroll compliance across 5 GCC states
Professional Tax rates and Shops Act leave rules differ by state. We calculate and remit correctly for every employee regardless of where they work.
Bangalore
KATech, SaaS & AI/ML payroll
PT: INR 200/month for gross above INR 15,000
- Koramangala
- Whitefield
- Electronic City
- Outer Ring Road
Hyderabad
TSCloud, platform & data engineering payroll
PT: INR 200/month for gross above INR 20,000
- HITEC City
- Gachibowli
- Kondapur
- Madhapur
Pune
MHER&D, embedded & semiconductor payroll
PT: INR 200/month (INR 300 in February) above INR 10,000
- Hinjewadi
- Kharadi
- Baner
- Magarpatta
Mumbai
MHBFSI, fintech & media payroll
PT: INR 200/month (INR 300 in February); HRA 50% metro
- BKC
- Andheri East
- Lower Parel
- Powai
Delhi NCR
HRConsulting & policy function payroll
Haryana PT: INR 200/month above INR 25,000 (varies)
- Gurgaon
- Noida
- Connaught Place
- Aerocity
Deliverables
Every challan, every form, every month - on time
We run payroll, file all statutory returns, and deliver MIS to your parent company by pre-agreed dates every month. No chasing, no missed deadlines, no penalties.
Monthly payroll register
Employee-wise gross, deductions, and net pay - every month
EPFO ECR challan & receipt
Filed and paid by the 15th with UAN-wise breakdown
ESIC challan & contribution history
Filed by the 21st for all ESIC-eligible employees
TDS deposit challan (Form 281)
TDS deposited by the 7th of the following month
Quarterly Form 24Q e-filing
Q1-Q4 filed by statutory deadlines with IT Department
Annual Form 16 (Part A + Part B)
Issued to all employees by 15 June via TRACES
Salary structure advisory note
CTC structure optimised for each employee band
Monthly Payroll MIS for parent
Employer cost summary, headcount, and variance analysis
Important compliance note
Late EPFO ECR filing attracts interest at 12% per annum under Section 7Q of the EPF Act and damages of 5-25% under Section 14B. TDS defaults attract interest at 1.5% per month under Section 201(1A) plus a penalty equal to TDS amount under Section 271C. We deposit all statutory payments before statutory deadlines - EPFO by the 14th, TDS by the 6th - to provide a safety buffer.
FAQ
Common questions about India payroll for GCCs
What are the due dates for all payroll statutory filings?
EPFO ECR: 15th of each month. ESIC: 21st of each month. TDS deposit: 7th of the following month (for non-government employers). Form 24Q (quarterly TDS return): Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May. Form 16 issuance: by 15 June. Professional Tax: varies by state, typically monthly.
How is HRA exemption calculated for GCC employees?
HRA exemption under Section 10(13A) is the minimum of: (a) actual HRA received, (b) 50% of Basic for metro cities (Mumbai, Delhi, Kolkata, Chennai) or 40% for non-metros, and (c) actual rent paid minus 10% of Basic. Bangalore is not officially classified as a metro for HRA purposes under Section 10(13A), though many employers apply the 50% rate. We compute this correctly per the Income Tax Act.
What is the Professional Tax slab in Karnataka, Maharashtra, and Telangana?
Karnataka: monthly gross up to INR 14,999 = nil PT; INR 15,000 and above = INR 200/month (INR 2,400/year). Maharashtra: gross up to INR 7,500 = nil; INR 7,501-INR 10,000 = INR 175/month; above INR 10,000 = INR 200/month except February = INR 300, totalling INR 2,500/year. Telangana: up to INR 14,999 = nil; INR 15,000-INR 19,999 = INR 150; INR 20,000 and above = INR 200/month.
How is gratuity calculated for GCC employees?
Gratuity is payable under the Payment of Gratuity Act 1972 to employees with 5 or more years of continuous service. Formula: (last drawn basic + DA) x 15/26 x years of service. The Act caps the tax-free gratuity at INR 20 lakh. Many GCCs provision gratuity monthly at 4.81% of basic (= 15/26 x 1/12) and fund it through a group gratuity policy with LIC or private insurers.
What is Form 12BB and when does an employee submit it?
Form 12BB is the investment declaration submitted by an employee to their employer at the start of the financial year (April). It declares HRA claim details (landlord PAN if rent exceeds INR 1 lakh/year), LTA claim, home loan interest (Section 24), and investments under Chapter VI-A (80C, 80D, 80CCD, etc.). Employers use this to compute TDS monthly. Investment proofs are collected during December-February.
Can employees switch between old and new tax regime mid-year?
Salaried employees can switch tax regimes once per financial year when filing their ITR. However, for TDS purposes, they declare their choice to the employer at the beginning of the year and cannot switch during the year for payroll TDS computation. The employer deducts TDS based on the declared regime. If an employee changes their mind, they adjust through their personal ITR.
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Accurate India payroll, every filing on time.
We handle EPFO by the 15th, ESIC by the 21st, TDS by the 7th, quarterly Form 24Q, and annual Form 16 - so your GCC payroll is fully compliant and your parent company gets clean MIS every month.