1.3 Key reporting requirements and deadlines
In India, the reporting requirements for payroll may be categorised into:
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– payslip and registers
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– forms prescribed by the statute
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– returns to be filed with statutory authorities
1.3.1 Payslip
The payroll for an organisation is processed every month within a tax period. The tax period is a period of 12 months starting from 1 April which is also referred to as the financial year. For any given payroll month, the monetary components of payroll will include the following:
| Table 2 |
| Components | Description of the components |
| Income from salary | Remuneration as per the employment contract comprising of the basic salary, employment benefits like allowances and perquisites as defined and as per the limits prescribed in the Indian Income Tax Act, 1961 (Act)* and other performance-based incentives like commission or bonus. |
| Organisations enable their employees to structure their pay structure. Generally, the basic pay is 50% of the cost to the company (CTC). The balance of 50% is split into allowances depending on employee preferences. |
| For instance: |
| | – employees residing in a rented accommodation may |
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