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Statutory Compliances

In today’s competitive and legal business world, it is very challenging for employers to manage statutory compliances without an accurate knowledge. Each country has various kinds of compliance requirements. We will discuss the statutory requirements for Indian payroll system.

There are a number of statutory requirements for Indian companies and companies have to spend a significant amount of time in their payroll management to ensure that they are compliant with the legal regulations. If companies fail to adhere to statutory compliances, they may have to face heavy penalties which are several times more than complying with legal guidelines.

The common statutory requirements that companies have to follow for their payroll management in India are

  • • Payroll • ESI Funds • Provident Fund • Professional Tax • Gratuity • The Minimum Wages Act • The Maternity Benefit Act • The Payment of Bonus Act • The Payment Of Wages Act
  • The EDLI (Employees’ Deposit Linked Insurance Scheme) provides assurance benefit (death insurance cover) to employees along with PF benefit. The employees do not contribute anything towards EDLI. The employers contribute 0.5% of the total wages of employees subject to a maximum of Rs 6500/-. EDLI applies to all the organizations where EPF Scheme applies.

    The EDLI (Employees’ Deposit Linked Insurance Scheme) provides assurance benefit (death insurance cover) to employees along with PF benefit. The employees do not contribute anything towards EDLI. The employers contribute 0.5% of the total wages of employees subject to a maximum of Rs 6500/-. EDLI applies to all the organizations where EPF Scheme applies.

    Statutory Deposits & Returns

  • • SR. DATE AND MONTH Act NAME OF THE STATUTORY RETURN TDS Register/Return How does Deductor pay TDS
  • TDS Register/Return

    How does Deductor pay TDS Every organization responsible for deducting tax is required to file quarterly statements of TDS for the quarters ending on 30 th June, 30 th September, 31 st December and 31 st March in each Financial Year The provisions of quarterly statements of TDS have been introduced in the statute vide section 200(3) w.e.f. 01/04/2005. The returns, forms and their periodicity is given below.

    e-TDS return is a TDS return prepared in form No.24Q, 26Q, 27EQ or 27Q in electronic media as per prescribed data structure. As per Section 206 of Income Tax Act all corporate and government Deductions are compulsorily required to file their TDS return on electronic media i.e. e-TDS. However for other Deductions, filing of e-TDS return is optional.

    Taxation

    Taxes are of two distinct types, direct and indirect taxes. The difference comes in the way these taxes are implemented. Some are paid directly by you, such as the dreaded income tax, wealth tax, corporate tax etc. while others are indirect taxes, such as the value added tax, service tax, sales tax, etc.

  • Direct Taxes: • Income Tax Act • Wealth Tax Act • Expenditure Tax Act • Interest Tax Act
  • Indirect Taxes: • Sales Tax • Service Tax • GST • VAT • Custom duty & Octroi: Excise Duty
  • Other Taxes: • Professional Tax • Property Tax Municipal Tax • Stamp Duty Registration Fees • Transfer Tax • Swachh Bharat Cess Krishi Kalyan Cess • Infrastructure Cess • Entry Tax.