Our expertise in labor laws and compliance enables us to offer organization-specific payroll processing services.
Single Point Payroll Solution
What does my Payroll Cover?
Our Service Will Cover Monthly Payroll Processing and Disbursement to Employee Accounts
PF, ESI and Other Labour Law Compliance
Employee Self Service Portal for Downloading Salary Slips and Applying Leaves
Definition of Optimum Pay Structure for Employees
Why Choose us?
We are a team of Chartered Accountants and HR Professionals. We have expert knowledge in Payroll Processing, Labor Law Compliances and we use cutting-edge technology to deliver the best experience.
Employers are required to pay employee wages and withhold the proper amount of taxes form each employee check to pay local, state, and federal government. Also, companies must pay employment taxes at the state (sometimes local taxes) and national level in addition to filing quarterly tax reports. If you choose to outsource Payroll to a third party, they handle all those tax obligations on your behalf
Form 16 is a certificate issued by the employer to its employees under section 203 of Income Tax Act for Tax Deducted at Source from the Income chargeable under the head “salaries” This is issued yearly and the original Form 16 is required to file Individual Tax Returns.
From the House Rent Allowance (HRA) received as part of salary during the year, least of the following three amounts are exempt from tax (or not included in income):
• Amount equal to 50% of annual salary for persons staying in metros (Mumbai, Chennai, Calcutta or Delhi) and 40%, for other cities
• Actual amount of HRA received
• Amount of rent actually paid in excess of 10% of annual salary
For HRA exemption purposes, Salary is defined as basic salary, dearness allowance, and commission on fixed percentage, but not other allowances.
1. Salary for the entire year Rs. 300,000/- (Basic + Dearness Allowance)
2. Actual HRA received Rs. 72,000/-
3. Rent paid for the entire year Rs. 60,000/- (5000 pm * 12 months)
HRA exemption for this case is:
a) Actual HRA received = Rs. 72,000
b) Rent paid less 10% of Salary = Rs. 30,000 (60,000 minus 30,000 (10% of 300,000))
c) 40% of Salary (300,000) = Rs. 120,000
Least of the above, Rs. 30,000, is exempt from tax.