Dear HR Manager, Statutory Compliance Worries Stop Here
From the view point of HR, knowledge of applicable compliance and taxes is important for accurate salary calculation and pay-outs each month. The taxation rules in India have cast a responsibility on the person making any payment to other (including salary) to deduct tax at source and ensure correct compliance. This means that it is mandatory for companies to deduct tax while paying salaries and remit the same to the tax authorities.
Hence there is no scope of errors as far as deduction of taxes from salary is concerned. The reason being monthly pay-out of salary and no room for rectification once incorrect salary has been transferred to employees. The impact on filing of returns and related rectification is also to be taken into account.
Common People-related Taxes Payable by Companies
- Income tax in the form of monthly TDS
- Regulations relating to retirement – Gratuity, Pension
- Professional Tax (Based on geographical location and State)
- ESIC and PF
- State specific labour laws
We are a new-age financial accounting company, that upholds age-old values and principles of Chartered Accountancy. We offer a fairly-differentiated set of services, tailored to specific business goals and challenges.