Understanding ESI and PF Deductions for Proprietorship Firms: What Should I Expect?

Hi all,

I am working with a proprietorship firm. Are ESI and PF deductions not necessary for this kind of firm? What other deductions can I have in my salary per month? Please guide me.

Regards,
Abhishek

Hi Abhishek,

For ESI & PF, there is nothing like proprietorship, partnership, or limited. The only criteria are the total strength, either 10 or 20, which is based on the nature of your business. What is the nature of your business?

The other deductions are PT, which differs from state to state, and TDS, which is based on the salary.

Cheers,
Jeeva

Hi Abhi,

If the total strength is 9, then you won't meet the criteria. There is no need for ESI or PF registration. If needed, voluntary PF registration can be done.

Cheers,
Jeeva

For further details, you can call me on 09343753361.