India Payroll Compliance Checklist 2025 — Monthly and Annual Tasks
February 2025 • 10 min read • India Compliance
Indian payroll compliance involves multiple statutory filings and payments spread across every month of the financial year. Missing a deadline results in interest, penalties, and regulatory notices. This checklist covers every recurring compliance task for the India financial year (April to March).
Monthly compliance tasks
TDS payment (Section 192)
By 7th of the following month
Deposit TDS deducted from employee salaries to the IT Department via Challan 281. Late payment attracts 1.5% interest per month.
PF contribution payment
By 15th of the following month
Remit both employee (12%) and employer (12%) PF contributions to EPFO. Submit ECR (Electronic Challan-cum-Return) on the EPFO portal.
ESIC contribution payment
By 15th of the following month
Remit employee (0.75%) and employer (3.25%) ESIC contributions to ESIC. File contribution report on ESIC portal.
Professional Tax (PT) payment
As per state schedule (usually last day of month)
Deduct and remit Professional Tax per employee per applicable state slab. Deadlines and frequencies vary by state.
Payroll processing and payslip delivery
Last working day of each month
Complete payroll calculation, process all deductions, and deliver payslips to employees for the month.
Quarterly compliance tasks
Form 24Q — TDS return for salary
Q1 (Apr–Jun): Due July 31
File quarterly TDS return Form 24Q on the TRACES/TIN portal. Contains details of all salary payments and TDS deducted in the quarter. Late filing penalty: ₹200/day.
Form 24Q Q2
Q2 (Jul–Sep): Due October 31
Same as Q1 but for July–September salary period.
Form 24Q Q3
Q3 (Oct–Dec): Due January 31
October–December period. Also a good time to review employee tax declarations for accurate TDS projection for Q4.
Form 24Q Q4 (most important)
Q4 (Jan–Mar): Due May 31
January–March period. Must include Annexure II with all employee-wise income and deduction details for the full year. This is the basis for Form 16.
Annual compliance tasks
Issue Form 16 to all employees
June 15 (of next FY)
Generate and distribute Form 16 (Part A + Part B) to every employee. Part A auto-generated from TRACES after Q4 filing.
Collect new investment declarations
March 31 (end of FY)
Collect fresh Section 80C, 80D, HRA, and other declarations from all employees for TDS projection for the new financial year.
Annual PT return
Varies by state
Some states (Karnataka, Maharashtra, etc.) require an annual Professional Tax return in addition to monthly payments.
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