Payroll in India
Updated on Tuesday 10th April 2018
Rate this article 3 reviewsbased on
Payroll is the procedure related to the payment of the company’s employees. Investors starting a company in India will need to integrate payroll services within their company as prescribed by the local legislation, or they may outsource such services to a business which is specialized in offering a wide range of payroll activities.
As a general rule, most of the companies (especially large companies) outsource payroll activities to specialized businesses, as they can offer full payroll activities, which may also include the usage of modern means of communication (such as smartphones or tablets) for the management of payroll procedures. Our team of specialists in company formation in India can provide in-depth assistance on the main payroll activities applicable to a local business.
Payroll activities in India
Payroll is a complex procedure that takes into consideration numerous aspects concerning the taxation of an employee hired in an Indian company, but it also refers to allowances, medical leave, meal coupons and other aspects associated with the rights granted to a local employee.
The taxation of an employee is also completed depending on his or her age and our team of consultants in company formation in India can advise on the taxation system applicable in this case.
One of the activities that are performed by in this situation refers to the allowances granted to the employee. It is important to know that India offers numerous allowances that are exempted from taxation, such as:
• house rent;
• medical leave;
• travel leave;
Register an employee for payroll in India
In order to benefit from payroll services in India, the company has to register any new employee, by providing a set of information regarding payroll aspects, as follows:
• personal data of the employee (name, address and others);
• tax information;
• salary information and job title;
• number of family members;
• health insurance information;
• premiums and allowances;
• type of employment contract;
• total number of working hours concluded in a month.
Businessmen who want to register a company in India are required under the local legislation to provide all the above mentioned aspects. They also need to submit specific forms with the local authorities and our team of representatives in company registration in India can advise businessmen on other compulsory steps regarding payroll activities.