Executive Summary: Mathematical models for computing Provident Fund (PF), Employee State Insurance (ESI), Professional Tax, and Income Tax TDS deductions.
Indian statutory payroll compliance requires strict adherence to government slab rates and statutory ceilings.
Provident Fund (PF): 12% of (Basic + DA), capped at Rs. 1,800/month for statutory wage ceiling of Rs. 15,000.
ESI Deduction: 0.75% Employee contribution and 3.25% Employer contribution for gross wages up to Rs. 21,000/month.
Professional Tax (PT): State-specific slab rates (e.g. Maharashtra, Karnataka, UP) deducted based on gross monthly earnings.
The system evaluates Old Regime vs New Tax Regime automatically to select the lowest tax liability for employees during annual IT projection calculations.
1. Statutory Deduction Formulas
2. Automated Form 16 & Tax Computation
The system evaluates Old Regime vs New Tax Regime automatically to select the lowest tax liability for employees during annual IT projection calculations.