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Payroll & Tax India

Given the complexities of India’s tax system and need to streamline operations, employers with a global workforce may find it useful to outsource their payroll management process to a third party. At INS Global, we have the payroll expertise in India to simplify your human resource management.

Understanding Payroll in India

In India, the tax period runs from April 1 to 31 March of the following year. Employers must consider aspects such as deductions, tax and social security contributions, annual leave allowance and bonuses when managing payroll for their employees. Payslips must be issued to employees in India and are usually done so in English. It is legally acceptable to issue payslips online.

Income Tax in India

Foreign nationals residing in India who are liable to pay tax, must do so on the following types of income:

  • Salaries
  • Reimbursements
  • Wages
  • Cash compensations
  • Allowances

All these forms of income are taxable along with compensation such as perks like a company car along with a driver or the individual’s employer paying tax on his or her behalf. The following rates of income tax apply to individuals employed in India as of 1 April 2015:

Annual Salary (INR) Percentage of Income Tax
Up to 250,000 No Tax
Between 250,000 and 500,000 5%
Between 500,000 and 1,000,000 20%
Over 1,000,000 30%

Social Security in India

The India social security system, Employees’ Provident Fund Scheme (EPF), comprises of a number of schemes which include pension, health insurance, maternity leave, gratuity and maternity leave. Employees must contribute 12% of the monthly salary to the EPF and 1.75% to the national insurance scheme. Employers contribute 12% of the employee’s monthly salary to the Scheme and 4.75% to the national insurance scheme.

We handle your payroll, you focus on your business

By letting a trusted partner like INS Global administer your payroll, you can remove the stress of operating in a new market, simplify global compliance, and free you and your staff of the major administrative burden that comes with gloabl expansion. We take into account:

  • Latest changes to legal regulations
  • Compliance with Indian employment and payroll regulations
  • Annual leave and expensive management
  • Monthly payslip generation and distribution

Every month we send you an invoice consisting of the total cost of employment and management fees. Your staff are paid monthly with tax and social security deducted at source and paid to the Indian authorities.

Let INS Global handle your payroll in India

Setting up your operations in India can be challenging without the necessary professional support. Outsourcing payroll to a trusted partner like INS Global allows your company to apply its focus elsewhere in its operations in India, all while remaining compliant with the necessary tax and employment regulations. We work with businesses throughout Asia-Pacific to ensure a seamless payroll management service. Contact us today to learn more.

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