India EOR guide
Bridge91 · India
Tax deducted at source, and Form 16
India's income tax withholding system. The closest equivalents are PAYE in the United Kingdom and federal withholding in the United States, with a different rhythm and a different set of forms.
- Employer cost
- Nil
- it is the employee's own tax
- Deposited
- By the 7th
- of the following month
- Returned
- Quarterly
- Form 24Q
- Certified
- Annually
- Form 16
The employee’s liability for the year is computed in April, then deducted across twelve months, deposited with the government by the seventh of each following month, returned quarterly on Form 24Q, and certified annually on Form 16 — India’s equivalent of a W-2 or a P60.
Employees submit investment declarations under sections such as 80C, along with house rent and travel allowance claims. These reduce the liability and must be incorporated during the year, or the employee over-pays and has to reclaim it.
This guide is general information about Indian employment law and practice, not advice on your situation. Rates and thresholds change. Talk to us before acting on any of it.
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