India payroll at a glance
Income tax slabs & TDS
Employers withhold income tax from salaries at source as TDS (Tax Deducted at Source) under Section 192 and deposit it with the Income Tax Department each month. The new tax regime is the default from FY 2025-26; employees may opt for the old regime if their deductions make it more beneficial.
Under the new regime a standard deduction of ₹75,000 applies, and the Section 87A rebate makes income up to ₹12.75 lakh effectively tax-free. The slabs below are for the new regime (FY 2026-27).
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*Indicative figures only and not definitive legal advice. Local regulations change frequently. Consult an expertIndia
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Statutory contribution rates
Payroll compliance cycle & deadlines
Indian payroll runs on a tight monthly and quarterly filing calendar across three authorities — the Income Tax Department (TDS), the EPFO (Provident Fund) and the ESIC (state insurance). Missing a deadline triggers interest and penalties, so the cycle below is the backbone of a compliant India payroll.
Gratuity, leave & the new Labour Codes
Beyond monthly salary and statutory contributions, Indian employers must budget for end-of-service and leave entitlements — and prepare for the biggest shake-up in decades: the four new Labour Codes, in force since 21 November 2025.
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TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment.
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India payroll: frequently asked questions
The questions our customers ask most often when setting up or switching their India payroll. For anything specific to your business, our India payroll specialists are a phone call away.
We manage monthly TDS calculation and remittance, quarterly TDS returns (Form 24Q), and the annual TDS certificate (Form 16) issued to each employee. We also handle monthly Provident Fund and ESI remittance and returns via the EPFO and ESIC portals, plus state-specific Professional Tax filings, which differ by the state each employee is based in.
Monthly payroll is standard across India, typically processed and paid by the last working day of the month or the first few days of the following month. Payslips itemize gross salary, allowances, PF, ESI, Professional Tax, and TDS deductions, along with net pay, and we generate these in a format that reconciles cleanly with EPFO, ESIC, and Income Tax Department filings.
Yes, our Global Payroll service processes payroll for employees of your existing India entity, registered for GST, TAN, EPFO, and ESIC as applicable. If you don’t yet have an India entity, our Employer of Record service is the right starting point instead, since it lets us act as the legal employer; many clients start with EOR and transition to Global Payroll once their own India entity is established.
Salaries in India are paid in Indian Rupees through domestic bank transfers, and we work with your India entity’s local banking arrangements to process net pay, statutory remittances, and vendor payments (such as PF and ESI contributions) on schedule, while keeping your global treasury and reporting in whatever base currency you use for consolidation.
Yes. We report India payroll data in a standardized format alongside your other countries, so headcount cost, statutory contribution spend, and compliance status are visible in one place rather than scattered across separate local providers. This consolidated visibility, rather than just a country-by-country dashboard, is the core of how we structure multi-country payroll reporting.