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Payslips & Payroll
Showing 6 of 25 articles
Structuring a Tax-Optimized CTC — The Indian Salary Architecture
A legally compliant Indian salary structure is not a single flat number — it's a Cost-to-Company (CTC) broken into Basic Salary, HRA, allowances, and statutory deductions. Get the ratios wrong, and your employees pay more tax, your EPF liability spikes, or you fail an Income Tax audit. This article explains the optimal structure and shows how Founding Legals auto-generates compliant payslips.
EPF, ESIC & Gratuity — The Three Mandatory Statutory Contributions
Indian payroll involves three mandatory employer-side contributions: Employees' Provident Fund (EPF), Employees' State Insurance (ESIC), and Gratuity. Each kicks in at a different employee headcount or salary threshold. This article explains all three, when they apply, and how Founding Legals automates the calculations and filings.
TDS on Salary Under Section 192 — Old vs. New Regime Decoded
Every employer in India must deduct Tax Deducted at Source (TDS) from employees' salaries under Section 192 of the Income Tax Act, 1961, based on each employee's declared tax regime. Errors in TDS deduction lead to interest, penalties, and Form 16 mismatches that haunt employees during ITR filing. This article explains the mechanics and shows how Founding Legals automates the entire flow.
State-Wise Professional Tax (PT) — A Founder's Guide
Professional Tax is a state-level tax on salaried income, deducted by the employer and paid to the State Government. The rate varies by state and salary slab. Failing to register or deduct PT is one of the most overlooked compliance errors among Indian startups. This article shows the rates state-by-state and how Founding Legals auto-calculates PT based on each employee's working location.
GST Registration for Startups — When to Register, How to File
Goods and Services Tax (GST) registration is mandatory for every Indian business crossing the threshold turnover — ₹20 Lakh for services, ₹40 Lakh for goods. But early-stage startups often need GST even below the threshold for B2B credibility, ITC (Input Tax Credit) claims, and inter-state supply. This article explains when to register and how Founding Legals automates it.
Full & Final Settlement (FnF) — The Exit Payroll Process
When an employee leaves your startup, Full and Final Settlement (FnF) is the legal closure of your employment relationship — covering unpaid salary, leave encashment, gratuity, PF settlement, TDS, and clearance certificates. Mishandling FnF leads to labour department complaints, EPFO grievances, and damaged employer brand. This article walks through the complete FnF flow.