India statutory compliance in Pitch N Hire HRMS

What statutory compliance includes

What does statutory compliance in HR and payroll actually cover?

Statutory compliance in HR is the set of deductions, employer contributions, registers and filings that attach to paying people, plus the evidence that each was completed on time. In an Indian payroll that means provident fund and ESI administered by the EPFO and ESIC, professional tax levied by individual state governments, income tax deducted at source under the Income Tax Department's rules, gratuity, and labour welfare fund where a state operates one. Pitch N Hire treats each of these as a configured rule set rather than as hard-coded logic: you set the applicable rates, wage definitions, eligibility conditions and state variations, and the payroll engine applies them to every run. Rates, thresholds and filing formats change, and they differ by state and by employee category, so confirm current requirements with the relevant authority. This page describes what the software does, not what the law requires of your organisation.

How does Pitch N Hire compute provident fund and ESI?

Provident fund and ESI are computed inside the same run that computes salary, so the employee deduction and the employer contribution derive from the wage components you have marked as eligible rather than being entered by hand. You define which earning heads form the contribution base, which employees are covered, and the treatment for anyone exempt or opted out under the conditions the EPFO and ESIC set. The engine then computes the deduction, the employer contribution and any administrative components for every covered employee, holding them as separate lines so the payslip and the accounting entry both show them distinctly. Universal account numbers, insurance numbers, coverage dates and exit dates live on the employee record, so the contribution file and the register are built from the same source the payroll engine reads. Contribution rates and wage ceilings are set by those authorities and revised; keep the configured values current.

How is professional tax handled across different states?

Professional tax is levied by individual state governments, so what applies depends on where an employee works rather than on where the company is registered. Pitch N Hire holds it as a per-state configuration covering the slab table, the deduction frequency that state uses, the treatment for people who join or leave mid-period, and any category-specific exemption. Each employee's work location on their record decides which state configuration the engine applies, which is what lets a single payroll run cover offices across several states without splitting the cycle. The deduction appears as its own line on the payslip and in the register, and the state-wise summary needed for remittance is produced per location rather than as one national figure. Because states revise their slabs and filing calendars independently, each state configuration is edited and dated on its own, and the current position should be confirmed with that state government.

How does TDS on salary work through the financial year?

Income tax deducted at source on salary is computed across the financial year rather than month by month. When the year opens, or when someone joins mid-year, Pitch N Hire builds a projected annual income from the salary structure in force, adds the variable pay already known, applies the tax regime the employee has selected together with the deductions and exemptions they have declared, and spreads the resulting liability across the remaining pay periods. Every later run recomputes that projection against what has actually been paid, so a bonus, a revision or a changed declaration adjusts the monthly deduction instead of creating a shortfall at year end. Employees submit declarations and later upload proofs through employee self-service, and payroll can accept, query or reject each proof, with an unproven declaration falling out of the computation. Regimes, slabs and permitted deductions are set by the Income Tax Department and change between years.

What does Pitch N Hire produce for Form 16 and Form 24Q?

Two outputs sit at the end of the tax year. The quarterly statement of tax deducted from salaries, filed as Form 24Q, is produced from the deduction records of the runs in that quarter, with employee-level detail and the challan references for tax already remitted. The annual certificate issued to each employee, Form 16, is assembled from the same records: earnings paid, exemptions allowed, deductions claimed and proven, tax computed and tax actually deducted across the year, together with the salary detail supporting it. Pitch N Hire builds both from payroll data rather than from a re-keyed summary, so an employee's certificate reconciles to the registers and to the returns filed. Employees collect the certificate and their annual tax computation sheet from self-service alongside their payslips. Formats and filing utilities are specified by the Income Tax Department and are revised periodically, so check the current specification before a filing.

How are gratuity and labour welfare fund tracked?

Gratuity and labour welfare fund are tracked continuously rather than worked out only at exit. For gratuity, Pitch N Hire holds each employee's continuous service from their date of joining, the wage components you have defined as the gratuity base, and the eligibility and computation rules you configure, maintaining a running liability so finance can see accrued exposure at any point instead of discovering it during an exit. When someone leaves, that accrual feeds the settlement rather than being calculated separately. Labour welfare fund, where the state operates one, is configured per state exactly as professional tax is, with its own contribution basis, frequency and remittance calendar. Eligibility periods, computation formulae and contribution amounts are set by statute and by the state concerned and are revised from time to time, so treat every configured value as something to review rather than as a permanent setting.

How are challans and returns prepared each payroll cycle?

Each closed payroll run produces the compliance outputs that period needs, generated from the run itself rather than compiled afterwards. Contribution files for provident fund and ESI are built in the layouts those portals accept, with member-level detail drawn from the same records the payroll engine used. Challan working sheets show what is payable to each authority for the period, split by entity and location where more than one exists. Professional tax and labour welfare fund summaries are produced state by state. Once a payment is made, the challan reference and date are recorded against the period, which is what turns a folder of files into an evidence trail. Due dates for each obligation are tracked with a named owner, so an unfiled return becomes visible before it becomes a notice. HR compliance software for India covers the wider register and documentation side; this module is the payroll-computation half of the same problem.

How do you prove compliance when an inspection or audit happens?

An inspection or an internal audit asks the same question repeatedly: show the figure, then show what produced it. Pitch N Hire answers that by keeping the register, the contribution file, the challan reference and the employee-level computation for every closed period linked to each other rather than filed separately. A queried deduction resolves to the run it came from, the configuration in force on that date, the wage components in its base, and the person who approved the run. Because configurations are dated, a change made this quarter does not retrospectively rewrite how an earlier period was computed, which is the property that makes historical figures defensible under questioning. Registers and statements export for the period and entity requested. For the payroll cycle these outputs come from see payroll runs, and for the India setup around it see payroll software India.