India Payroll Compliance Calendar — TDS, PF, ESI, PT & More Due Dates (FY 2025-26)

Monthly Compliance Cycle

Indian payroll has four compliance items that recur every single month for every active employer. Missing any of these triggers interest and penalty meters that are rarely worth the cash flow saved by delay.

7th of Following Month: TDS Deposit

TDS deducted from salary under Section 192 of the Income-tax Act 1961, plus TDS deducted under all other sections (194A interest, 194C contracts, 194J professional fees, 194Q purchase of goods), must be deposited by the 7th of the following month via Challan ITNS-281. The exception is March TDS — for salary paid in March, the deposit is due by 30 April rather than 7 April. Use the e-Pay Tax facility on the income tax portal or authorised bank portals.

15th of Following Month: PF + ESI

The Provident Fund Electronic Challan-cum-Return (ECR) is uploaded to the EPFO Unified Portal by the 15th of the following month. The ECR captures employee + employer 12% contribution, EDLI charges (0.5% capped) and admin charges (0.5% capped). Simultaneously, ESI contribution is filed on the ESIC portal by the same date. These two filings together close the social security loop for the previous month's wages.

State-Specific: Professional Tax

Professional tax monthly remittance dates differ across states. Maharashtra and Karnataka are by the end of next month; Tamil Nadu is half-yearly (1 April / 1 October); Telangana / Andhra Pradesh / Madhya Pradesh by 10th; Gujarat by 15th; West Bengal / Odisha by 21st. Delhi, Haryana, Punjab and Uttar Pradesh do not levy professional tax. The calculator above uses your state to auto-populate the correct date.

If GST-Registered

For employers also registered under GST (most companies are), GSTR-1 is due by the 11th and GSTR-3B by the 20th of the following month. While not strictly "payroll" filings, these often run on the same calendar maintained by the finance team. Refer to our GST Late Fee Calculator for penalty computation.

Quarterly Filings — Form 24Q & Form 26Q

Beyond monthly TDS deposits, quarterly TDS returns must be filed to the income tax portal capturing all deductions made during the quarter. These returns enable Form 16 / 16A generation downstream and feed the annual income tax data for employees.

Form 27Q applies for TDS on payments to non-residents and follows the same quarterly calendar. Form 27EQ for TCS follows the same dates plus 15 days. All forms are filed at TIN-NSDL or through the TRACES portal of the Income Tax Department.

Late Filing Consequences

Late filing of TDS quarterly return attracts a fee of ₹200 per day under Section 234E, capped at the TDS amount. Penalty under Section 271H ranges from ₹10,000 to ₹1,00,000 for non-filing or incorrect filing. Most importantly, late or incorrect Form 24Q delays Form 16 generation, which delays employees' ITR filing and creates support escalations from the workforce.

Annual Events — The Big Five

Five annual events drive year-end payroll workload. Spread across the year, each has a hard deadline backed by penalty.

15 June: Form 16 Issuance

Form 16 — the salary TDS certificate covering the previous financial year ending 31 March — must be issued to every employee by 15 June per Rule 31 of the Income-tax Rules 1962. Form 16 has Part A (TRACES-generated, capturing TDS deposits) and Part B (employer-prepared, capturing salary breakup, deductions and tax computation). Late issuance attracts ₹100 per day per employee penalty under Section 272A(2).

30 November: Statutory Bonus Payment

Under Section 19 of the Payment of Bonus Act 1965, statutory bonus must be paid within 8 months of the close of the accounting year. For accounting year ending 31 March 2026, the bonus is payable by 30 November 2026. Applicability: salary ≤ ₹21,000/month, in establishments with 20+ employees. Minimum 8.33% to maximum 20% of basic + DA capped at ₹7,000/month. Refer to Payment of Bonus Act 1965. Form D bonus return must be filed within 30 days of payment.

31 January: POSH Annual Report

The annual report under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013 must be submitted to the District Officer by 31 January for complaints received in the previous calendar year. Even nil reports must be filed. Failure attracts penalty up to ₹50,000 and repeat offences may lead to cancellation of business licence. POSH committee must comprise external member, woman chairperson, and minimum 4 members.

30 April: Annual Returns ER-1, Form 5 (PF), Form 11A (ESI)

The unified annual return ER-1 is due by 30 April for the financial year ending 31 March, covering shop and establishment information, employee count, wages paid, and statutory contributions. PF Form 5 and ESI Form 11A annual returns follow similar timing. From the Wages Code 2019 framework effective 21 November 2025, the Ministry of Labour has notified a single-window unified annual return mechanism — practical adoption is gradual through FY 2025-26. Refer to labour.gov.in for current notifications.

15 January / 31 January: LWF Annual or Half-Yearly

Labour Welfare Fund schedule varies by state. Maharashtra and West Bengal: half-yearly (31 Jan + 31 Jul). Karnataka: 15 January for the previous calendar year. Tamil Nadu: 31 January. Gujarat: 15 July. The LWF rate is small (₹6 to ₹100 annual employer share per employee depending on state) but missing the deadline triggers state-specific late fees.

State-Wise Professional Tax & LWF Schedule

Professional Tax and Labour Welfare Fund are state-administered levies with significant date and amount variation. The calendar above auto-applies your state. The reference tables below give the full picture.

Professional Tax Monthly Remittance

Labour Welfare Fund Schedule

Late Filing Penalty Regime

Each statutory remittance has its own penalty meter that begins running from day one of delay. The combined exposure across PF, ESI, TDS and PT for a missed month can exceed the statutory amount itself within 12-18 months.

TDS Late Deposit / Late Filing

• Late deposit interest: 1.5% per month under Section 201(1A), calculated from date of deduction to date of deposit. Even partial month counts as full month.
• Penalty: Up to amount of TDS not deposited under Section 271C.
• Disallowance: 30% of expense disallowed under Section 40(a)(ia) for late deposit beyond due date for filing return.
• Late filing fee: ₹200/day for late TDS quarterly return under Section 234E, capped at TDS amount.
• Penalty for non-filing: ₹10,000 to ₹1,00,000 under Section 271H.
• Prosecution: 3 months to 7 years imprisonment under Section 276B for wilful default.

PF Late Deposit

• Interest: 12% per annum simple interest under Section 7Q of the EPF Act.
• Damages: Under Section 14B, 5% (delay up to 2 months), 10% (2-4 months), 15% (4-6 months), 25% (6+ months) of arrears.
• Prosecution: Up to 1 year imprisonment for non-payment of employee deductions under Section 14.

ESI Late Deposit

• Interest: 12% per annum simple interest from due date to deposit date.
• Damages: 5% (delay up to 2 months), 10% (2-4 months), 15% (4-6 months), 25% (6+ months).
• Recovery: ESIC can attach bank accounts and assets for non-payment.

Professional Tax Late Payment

Penalty varies by state. Maharashtra: 1.25% per month interest. Karnataka: 1.25% per month + penalty up to 50% of tax. Tamil Nadu: 2% per month interest plus penalty up to 50%. State-specific simple interest charges apply, plus late filing penalty for the PT return.

March – April Rush — The Year-End Crunch

The transition from one financial year to the next concentrates payroll workload across two months. Plan capacity accordingly.

March Activities

• 7 March: February TDS deposit (regular monthly).
• 15 March: February PF and ESI challan.
• 20-31 March: Employee investment proof verification — collect physical/digital proof of 80C / 80D / HRA exemption / home loan interest claimed in declarations.
• 25 March: Last week to revise TDS calculations based on actual investment proofs vs declarations. Adjust March payslip TDS to true up the year.
• 31 March: Maharashtra PT annual cap (₹2,500) review. Year-end gratuity actuarial valuation. Bonus accrual booking. Leave encashment provision. Year-end Ind AS 19 disclosures.

April Activities

• 7 April: NOT March TDS — note exception. April 7 due is for any non-March TDS deductions.
• 15 April: March PF and ESI challan.
• 30 April: March TDS deposit — the year-end exception when March deposit is one month delayed. Also annual return ER-1 due. Salary revision letters effective from 1 April typically issued mid-April.

May Activities

• 7 May: April TDS deposit.
• 15 May: April PF and ESI challan.
• 31 May: Q4 TDS return Form 24Q for January-March quarter. This is the heaviest TDS return of the year — captures full FY data.

June Activities

• 7 June: May TDS deposit.
• 15 June: May PF / ESI + Form 16 issuance to all employees. Also Form 12BA for perquisites.

The March-April-May-June quartet defines the year-end payroll cycle. Most CA firms recommend completing investment proof collection by 28 February to allow buffer for verification before March payroll cut-off.

Recommended Monthly Workflow

A repeatable monthly workflow eliminates surprises and reduces the mental overhead of tracking dates.

Days 1-3 of the Month

Run payroll for the previous month. Generate payslips. Disburse salaries. Compute TDS, PF, ESI per employee. Calculate professional tax based on state slabs. Reconcile gross-to-bank-credit numbers. Validate against the previous month's payroll register.

Days 4-7

Deposit TDS via Challan ITNS-281 by the 7th. Use the e-Pay Tax facility on income tax portal or authorised bank challan. Generate challan receipt and file in compliance folder. For year-end (March), this step is delayed to 30 April.

Days 8-15

Upload PF ECR to EPFO Unified Portal. Pay PF challan via authorised bank. Pay ESI challan on ESIC portal. Verify both challans show "Paid" status before the 15th. State-specific PT payment if state requires by 10th-15th.

Days 16-21

Pay PT in states requiring by 21st (West Bengal, Odisha). File state PT return where applicable. Update employee ledger with payment confirmations.

Days 22-30

Pay PT in Maharashtra and Karnataka (end of month). Reconcile bank statement against payroll bank credits. Close payroll books for the month. Begin preparation for next month — collect attendance, leave records, expense reimbursements.

Quarterly Add-On (Last Month of Quarter)

In June, September, December and March, add the quarterly TDS return preparation to the workflow. File Form 24Q + Form 26Q within 1 month of quarter end. Generate form summaries before filing to validate aggregate numbers against monthly totals.

Annual Add-Ons

April: ER-1 annual return, March TDS deposit. June: Form 16 issuance, Form 12BA. November: Statutory bonus payment for FY ended 31 March. January: POSH annual report, Q3 TDS return, LWF half-yearly (where applicable). May: Q4 TDS return.

Frequently Asked Questions