Payroll Compliance Checklist India 2026 — Monthly, Quarterly & Annual Guide
Managing payroll compliance in India means tracking dozens of deadlines across multiple statutory bodies. Missing even one filing can trigger penalties, interest charges, and legal consequences. This comprehensive checklist covers every payroll compliance requirement Indian employers must meet on a monthly, quarterly, and annual basis.
Monthly Compliance Deadlines
PF (Provident Fund) — Due by 15th of Following Month
Employers must deposit both employer and employee PF contributions by the 15th of the following month. The contribution rate is 12% each from employer and employee on basic salary plus DA (up to ₹15,000 statutory ceiling, though many companies contribute on full basic). ECR (Electronic Challan cum Return) must be filed on the EPFO unified portal before making payment. Late payment attracts interest at 12% per annum and damages ranging from 5% to 25% of arrears.
ESI (Employee State Insurance) — Due by 15th of Following Month
ESI contributions must be deposited by the 15th of the following month. Employer contributes 3.25% and employee contributes 0.75% of gross wages for employees earning up to ₹21,000/month. ESI returns are filed half-yearly (April–September and October–March). Late payment attracts 12% interest per annum plus damages.
Professional Tax — Varies by State
Most states require monthly PT deposit by the last day of the following month, though due dates vary. Tamil Nadu follows a half-yearly cycle. Maharashtra requires monthly payment with the annual return due by March 31st. Employers must check their specific state’s due dates.
Quarterly Compliance
TDS Returns (Form 24Q) — Due Dates
Q1 (April–June): Due July 31st | Q2 (July–September): Due October 31st | Q3 (October–December): Due January 31st | Q4 (January–March): Due May 31st. Form 24Q reports TDS deducted from employee salaries with annexure details. Late filing attracts ₹200/day penalty under Section 234E up to the TDS amount. Additionally, Section 271H allows penalties from ₹10,000 to ₹1,00,000.
Annual Compliance
Form 16 Generation — Due by June 15th
Employers must issue Form 16 (TDS certificate) to all employees by June 15th following the financial year. Part A is generated from TRACES after filing Q4 return, and Part B contains salary details, deductions, and tax computation.
PF Annual Return — Form 3A/6A
Annual PF return consolidating monthly contributions for each employee. Due by April 30th following the financial year.
ESI Annual Return
Annual return summarizing half-yearly contributions. Due within 42 days after the end of the contribution period.
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