🛡 HR Compliance India

India Statutory Compliance Guide

Your complete reference for Indian labour law compliance — PF, ESI, Professional Tax, TDS, Gratuity, and Telangana-specific regulations. Updated for FY 2025–26.

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Labour Laws
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Rate Updates
PT, PF, ESI, TDS changes
FY26
Updated
Budget 2025-26 changes included
📄 Compliance Guides

Key Compliance Areas Explained

Practical guides written by our Hyderabad compliance experts — no legalese, just what you need to know to stay compliant.

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Telangana Professional Tax (PT)

Telangana Specific

Professional Tax is a state-level tax levied by the Government of Telangana on salaried individuals. Employers are responsible for deducting PT from employee salaries and remitting to the state treasury.

Current Slabs
Salary < ₹15,000/mo: Nil | ₹15,001–₹20,000/mo: ₹150 | > ₹20,000/mo: ₹200
Payment Due Date
Monthly: 10th of following month. Annual PT registration renewal: 30 June each year.
Returns
Form V (Employer Certificate) — filed monthly. Online filing via Telangana Commercial Taxes portal.
Penalties
₹50/day for late filing. Interest at 1.25% per month on unpaid PT.
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How HRSoftwareHyderabad Automates This

Our platform auto-calculates PT for every employee based on their monthly gross, generates Form V, and files directly with the Telangana portal.

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Provident Fund (EPF)

Central — All States

The Employees' Provident Fund (EPF) is a mandatory retirement savings scheme under the EPF & MP Act 1952, administered by EPFO. Applicable to establishments with 20+ employees.

Employee Contribution
12% of Basic + DA (deducted from salary)
Employer Contribution
12% of Basic + DA: 8.33% → EPS, 3.67% → EPF. Plus 0.50% → EDLI insurance.
Admin Charges
0.50% of Basic + DA (min ₹500/month)
Due Date
Challan payment by 15th of following month. ECR upload by 25th.
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How HRSoftwareHyderabad Automates This

Our platform calculates PF for all eligible employees, generates the ECR file in EPFO format, and tracks UAN/KYC status for every employee.

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ESI (Employees' State Insurance)

Central — All States

ESI is a self-financing social security and health insurance scheme for Indian workers, managed by ESIC. Applicable to establishments with 10+ employees where any employee earns ≤ ₹21,000/month.

Employee Contribution
0.75% of gross wages (from salary)
Employer Contribution
3.25% of gross wages
Gross Wage Ceiling
Employee earning > ₹21,000/month: exempt from ESI
Due Date
Challan payment by 15th of following month. Half-yearly returns in May and November.
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How HRSoftwareHyderabad Automates This

Platform auto-identifies ESI-eligible employees (wage ≤ ₹21,000), calculates both contributions, and generates the ESIC challan for portal upload.

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TDS on Salary (Section 192)

Income Tax Act

Employers are required to deduct Tax Deducted at Source (TDS) from employee salaries under Section 192 of the Income Tax Act, 1961, based on the employee's total estimated annual income and declared investments.

Basis
Estimated annual income minus declared deductions (80C, 80D, HRA, LTA, Home Loan Interest)
Tax Regimes
Old Regime: slabs with deductions | New Regime: lower slab rates, limited deductions
TDS Deposit
By 7th of following month (except March: 30 April)
Form 24Q
Quarterly TDS return to Income Tax Department. Form 16 issued to employees by 15 June each year.
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How HRSoftwareHyderabad Automates This

Employees declare investments via Form 12BB in our portal. Platform calculates monthly TDS, adjusts for mid-year changes, and generates Form 24Q and Form 16.

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Gratuity

Payment of Gratuity Act 1972

Gratuity is a lump-sum retirement benefit payable to employees who have completed 5 or more years of continuous service with an employer. Applicable to establishments with 10+ employees.

Formula
(Last Basic + DA) × 15/26 × Years of Service
Eligibility
Minimum 4 years and 240 days of continuous service (5 years for non-season establishments)
Maximum Limit
₹20 lakh (tax-exempt up to this limit)
Payment Deadline
Within 30 days of separation. Interest at 10% p.a. for delays.
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How HRSoftwareHyderabad Automates This

Platform tracks employee tenure, provisions gratuity liability monthly, calculates exact gratuity on separation, and generates the gratuity notice to the controlling authority.

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Annual Bonus

Payment of Bonus Act 1965

The Payment of Bonus Act 1965 mandates a minimum annual bonus for eligible employees. Applicable to establishments with 20+ employees.

Minimum Bonus
8.33% of annual salary or ₹7,000 (whichever is higher)
Maximum Bonus
20% of annual salary
Eligibility
Employees drawing salary up to ₹21,000/month who have worked for at least 30 days
Payment
Within 8 months of financial year end (i.e., by 30 November for April–March FY)
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How HRSoftwareHyderabad Automates This

Platform calculates eligible bonus for all qualifying employees at year-end and generates the statutory bonus register and payment summary.

⁉ Frequently Asked Questions

Common Questions About HR Compliance

Hyderabad businesses must comply with Telangana Professional Tax Act, Provident Fund Act, ESI Act, Payment of Gratuity Act, Telangana Shops and Establishments Act, Minimum Wages Act (Telangana rates), Payment of Bonus Act, and Maternity Benefit Act. Non-compliance penalties range from 5,000 to 50,000 rupees per violation depending on the statute.
HR software automates statutory calculations (PF, ESI, PT, TDS), generates compliance returns in the required format, tracks due dates with automated reminders, maintains audit-ready records, and updates rate tables when government notifications change. This reduces compliance errors by over 95% compared to manual processing.
Telangana Professional Tax is a state tax on employment income. Employers deduct it from employee salaries based on monthly gross salary slabs. Current maximum is 200 rupees per month. Employers must register, deduct, and remit PT monthly. Late payment attracts penalties and interest.
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