To maintain the legal structure of an organization under which they maintain the list of numerous employees, not only this, but it also helps to deduct and deposition their several taxes and determines the amount of salary to be paid under the payroll processing. Under this process, there are ESI, PF, and TDS. So let’s know in details about them and also about the ESI, TDS and PF payment due dates.
What is PF?
- 1 What is PF?
- 2 What Does It Mean By ESI?
- 3 What Does the TDS Mean?
The Provident Fund (PF) is basically a scheme for the profit of the employees. In this fund, the employee contributes a certain amount from his or her salary and also the employer i.e. the company contributes a certain sum to the fund for its employee’s future benefits.
From this contribution or you can also say the investment of both the employee and the employer, the employee gets a certain amount of interest each year. However, the employee does not get this amount in hand each year.
He or she gets this amount at the time of his or her retirement or at the time of leaving the company.
The whole amount of this PF is (Employer’s contribution + employee’s contribution + total interest)
The Contribution Of Employee To PF (Provident Fund):
The employee has to contribute a minimum of 12% of his or her DA + Basic Salary to the Provident Fund (PF). In the case of Private Company, there isn’t any Dearness Allowance (DA).
That is why in the case you are an employee of a private sector company then it is 12% of the basic salary.
The Contribution of Employer to PF (Provident Fund):
The Employer contributes a total of 12% to the PF (8.33% is for Employee Pension Scheme i.e. EPS and rest 3.67% is for other purposes.
PF Payment Due Dates:
The PF payment due date is the time by which you must submit your PF. The company automatically deduct the amount from the salary of the employee. This deduction has to take place on or before the 15th of the month.
PF return due date:
The PF return due date is similar to the PF payment due date i.e. the return due date is on or before the 15th of each month.
PF Payment Due Date: On or before the 15th of each month
Annual Return Due Date of PF : Each years on the 25th April
Return Due Date of the PF : On or before the 15th of each month
What Does It Mean By ESI?
Employee State Insurance (ESI) is a fund that provides medical and cash benefits to the employee and the employee’s families. The Employees’ State Insurance Corporation (ESIC) Maintain this social security scheme i.e. ESI.
This scheme is applicable to the employees, whose earning is not more than INR 21,000/- per month.
The employer or the company contributes 4.75% to the ESI fund and the employee has to contribute only 1.75% to the ESI fund.
Both the employee and employer contributions for the ESI facility.
ESI is deducted at a rate of 4.75% from the employer’s side and at a rate of 1.75% from the employee’s side.
ESI Payment Due Dates:
The employer i.e. the company has to pay the Employee State Insurance (ESI) payment to the department each month on or before the 15th. It is the same as the PF payment due date.
ESI return due date:
The ESI return due date is set on a basis of 6 months and thus the ESI return due date is fixed on the 11th November & May.
ESI Payment Due Date: On or before the 15th of each month
Return Due Date of the ESI: Fixed on the 11th November & May
What Does the TDS Mean?
Tax Deducted at Source (TDS) means a secondary tax collection according to the Income Tax (IT) Act, 1961.
The TDS rule leads employers i.e. the companies to subtract a certain sum of tax beforehand complete payment is paid to the employee.
TDS Payment Due Dates:
The employer i.e. the company has to pay the Tax Deducted at Source (TDS) payment to the department each month on or before the 7th. For the payment of March, it is on or before the 30th of April.
Return Due Date Of TDS :
The return due date of the TDS is set on the basis of a quarter month i.e. 4 months and thus the TDS return due date is on or before the 31st of each quarter month.
TDS Payment Due Date: On or before the 7th of each month (For the payment of March, it is on or before the 30th April)
Return Due Date (TDS): on or before the 31st of each quarter month