New HR in a Startup: How Do I Begin Handling Employee Tax Deposits?

Guidance Needed for Tax Submission Process

I have joined a very small company of 10-12 people as an HR generalist. I take care of the payroll management. As per their salary, all the 10-12 employees fall under taxable income. Since it's a startup company, and I am new to this role, I am starting to deduct their taxes, and the responsibility for submitting their tax to the income tax department lies with me.

Now, could you please guide me on how I can start the process of depositing this amount to the income tax department? Do I need to visit the income tax department to get some details on where I can deposit this, or do I need to register with the income tax department online? I just want to get an idea of how I can start this process.

Please guide.

To initiate tax deposits for the payroll management in a startup company, follow these steps:

1. Register Online: Visit the official website of the Income Tax Department in India and register as an employer. You will receive a unique employer identification number (EIN) upon successful registration.
2. Calculate Taxes: Determine the tax liability for each employee based on their income and applicable tax rates.
3. Deduct Taxes: Deduct the calculated tax amount from each employee's salary as per the income tax slabs.
4. Generate Challan: Use the EIN to generate a tax payment challan online. This challan will have details of the tax amount to be deposited.
5. Deposit Taxes: Visit an authorized bank or use online banking facilities to deposit the tax amount using the generated challan. Ensure timely deposits to avoid penalties.
6. File Returns: After depositing the taxes, file quarterly TDS returns with the Income Tax Department to report the tax deductions made from employees' salaries.
7. Maintain Records: Keep detailed records of tax deductions, deposits, and filings for future reference and compliance audits.

By following these steps diligently, you can ensure compliance with tax regulations and fulfill your responsibilities as an HR professional handling payroll management in a startup company.