Partner - Risk Management
Accounts & Finance
Talent Acquisition Expert
P.F deductions are separate.
You need to register your organization with the P.F body in your city and then enroll members who are allocated a Universal Number. Deduction's are explained in other parts of the forum, but you need to be cognizant of the deduction thresholds as well as ESIC norms.
Please use a consultant to get this activity done in your firm since the PF dealings can be a little lengthy the first time around despite the online registration facilities offered.
4th September 2015 From India, Mumbai
1. To deduct TDS in salary you have to make computation of every employee on the basis of declaration given by them.
2. In the declaration they have to mention there investment which are eligible for deduction as per Income Tax
3. Declaration format has to be given by you to every employee and get the copy of the same in the month of April or if new employee then take it in the month of he/she join.
4. Calculate Tax as per declaration furnished by them.
5. If you want format of Declaration and Computation (Formant of Tax Calculation) then let me know I will send format. my mail id is
4th September 2015 From India, Pune
Tds is actually a complex working that involves knowledge of tax laws.
Atul has given a simplified version of the process. But it's better that you speak to your firms auditors and ask them what you should do. TDS needs to be deducted only above a certain salary level, not for all. Once the computation is done, you can follow it till the end of the year. Also remember that the employees need to give certain documents to you. If they don't, then in the last 2 months the TDS deduction will be higher. That too, your auditor will work out for you.
For PF, since you have more than 19 employees, it apples.
Go to the PF website and you will have the registration process given.
Each month, by the 7th you need to pay PF based on the previous months salary and certain admin fees. The PF portal computes it for you once you upload your payroll details inf it.
PF is deducted from each employees salary at 12% of basic + DA, subject to a maximum of ₹1800. The employer needs to contribute the same amount in addition. Do not deduct both amounts from employees salary.
Search the forum for more info on PF
5th September 2015 From India, Mumbai
As stated by you that you are newly recruited in HR. It is appriciable and good to see, being newly recruited, you are handling TDS.
As per my opinion your superior should assign u the job after giving a brief on TDS. Mr. Banerjee has rightly said, TDS is very complex you should approach to F&A dept. in the matter. TDS can't be explained in a single thread.
For salary empoyees the above formula will work. In addition to the above, pls note there is variety of TDS %.
If you have recruited any person on contract basis (for some professional services) and his/her remuneration is also processed by u.
In that case TDS will be deducted @ 10% on every payment (remuneration/Contract Price). (TDS on professionals).
There is no matter how much is the remuneration, what is that tax limit, exemptions, deductions etc.
For PF first get the PF Registration. I would suggest first hire some consultant services, once you go thru deeply and will be able to handle independently.
Than you can do this at your own. These are Legal and Statutory Complicance, shud be done only under supervision of some expert/s.
if not done properly and timely can be lead to damages and penalties to your company.
Gud luck for your new assignments.
5th September 2015 From India, Delhi
I am working in a private bank as a Manager in Mumbai. I have 40 days of Paid leaves as balance. I resigned from company and served notice of 2 months and 15 days instead of 3 months.
Our bank does not have Leave encashment policy as they have stopped it long back for all the employees. So I am loosing out on getting my leaves encashed in settlement.
Also my HR is not allowing me to adjust these leaves against short notice of 14 days says it is not company policy. So it is a total loss for me.
Can any one please guide me what are the rules in India for leave encashment and leave adjustment.
Appreciate your guidance here.
5th September 2015 From India, Mumbai