A diagnostics entrepreneur on EM Bypass grew from 6 technicians to 14 in a year. The accountant who had run payroll on a spreadsheet kept deducting TDS correctly, crossed the 10 employee ESI line without noticing, and had never heard of the profession tax column because he had trained in Delhi. The first state notice arrived in month fifteen. The notice wanted interest and penalty on a tax that costs ₹2,400 a year at most. This page explains how payroll works for a Kolkata employer and how we run it.
Do you need payroll services in Kolkata?
Yes, from the first salaried employee. Each hire triggers a set of obligations, and they stack as the team grows:
- TDS on salaries above the exemption limit, with Form 24Q filed every quarter
- West Bengal profession tax deducted from every salaried employee, under the state's 1979 Act
- ESI once you have 10 employees, EPF once you have 20
- Payslips, Form 16 and full and final settlements
- Leave, bonus and gratuity rules as the team matures
A Salt Lake Sector V startup with 5 engineers already has TDS and profession tax. The EM Bypass lab above added ESI at 10 and will add EPF at 20. We map the obligations at setup so nothing arrives as a surprise notice.
How does payroll work for a Kolkata business?
One register, five outputs: TDS, PF, ESI, profession tax and the West Bengal Labour Welfare Fund, whose small half yearly contributions go in June and December. A West Bengal Shops and Establishments registration should already sit behind the hiring. Each month:
- You share attendance, leave, joiners, exits and reimbursements by the 25th.
- We compute gross pay, then TDS, EPF, ESI and West Bengal profession tax for each employee from the master.
- Payslips are generated and the bank disbursement file is prepared for your approval.
- Deductions are deposited: TDS by the 7th, EPF and ESI by the 15th, West Bengal profession tax by the 21st of the following month.
- Returns follow from the same register: Form 24Q each quarter, EPF and ESI returns monthly, the profession tax annual return in Form III, and Form 16 after year end.
Because every deduction comes from one register, the payslip, Form 16, the PF passbook and the state return agree with each other. That single fact removes most of the payroll disputes we see, from a technician in Kasba questioning a deduction to an auditor in September asking why Form 16 and the ledger differ by a few hundred rupees.
Who are your payroll authorities in Kolkata?
Four, and they do not talk to each other:
- The income tax department for TDS, with quarterly returns in Form 24Q
- EPFO, with a regional office in Kolkata, for provident fund
- ESIC, also with a Kolkata regional office, for employee state insurance; its dispensaries and hospitals across Kolkata and Howrah serve insured staff
- The Directorate of Commercial Taxes, West Bengal, for profession tax, which runs through the state's portal
None of them requires a visit for routine payroll. All of them issue notices when a deposit is late, and the interest runs from the due date.
What are the deposit dates, and what does lateness cost?
| Deduction | Who | Deposit date | If late |
|---|---|---|---|
| TDS on salaries | Every employer above the exemption | 7th of next month | Interest at 1.5 percent a month and late filing fees on Form 24Q |
| West Bengal profession tax | Every Kolkata employer | Monthly, state schedule | Interest and penalty from the state directorate |
| EPF | Employers with 20 or more staff | 15th of next month | Interest and damages from EPFO |
| ESI | Employers with 10 or more staff | 15th of next month | Interest and damages from ESIC |
You pay ₹149 per employee per month, covering computation, payslips, deductions, deposits and returns. The exact quote depends on head count. Registrations for EPF, ESI or profession tax, where you do not hold them yet, are priced when needed, and most new Kolkata clients need at least one.
What does the file contain?
- Employee master: PAN, Aadhaar, bank details, date of joining, salary structure
- Existing PF, ESI and profession tax registration numbers, or we register you
- Offer letters or the salary break up policy for allowances and reimbursements
- Attendance and leave records, monthly
- Previous payroll register and Form 24Q acknowledgements if you are moving mid year
- Authorised signatory details for deposits and the bank file
What deadlines apply?
- 25th of the month: inputs from you
- Last working day: salaries disbursed from the approved bank file
- 7th of the next month: TDS deposited
- 15th of the next month: EPF and ESI deposited and returns filed
- By the 21st of the following month: West Bengal profession tax deposited; annual return in Form III
- Quarterly: Form 24Q filed; annually: Form 16 issued, the ₹2,500 enrolment amount paid by 31 July, and the Labour Welfare Fund contributions sent in June and December
Why does West Bengal profession tax trip up so many Kolkata employers?
Because it is absent from the spreadsheet most small teams inherit and absent in several states. A founder who ran a team in Delhi, where no profession tax exists, hires in Kolkata and carries over the old template. A company headquartered in a state that levies its own version, assumes the Mumbai registration covers the Kolkata branch. It does not; the levy is state by state, and the West Bengal employer registration is separate.
The fix is a registration certificate from the West Bengal directorate, a slab map for the team and a deduction line on every payslip. Deductions top out at ₹200 a month, so the money is small. The penalty exposure for ignoring it is not.
Why choose LegalX India for payroll in Kolkata?
LegalX India is a Kolkata firm at 58B, Bidhan Park, Taki Road, Barasat, Kolkata 700124, and our payroll team runs the profession tax column as standard, not as an afterthought. You get one register feeding every deduction, deposits on their dates, returns filed from the same data and payslips your Sector V engineers will not question. The fee is ₹149 per employee per month,.
The national page covers salary structuring and statutory rates in more depth in payroll services in India explained. For a Kolkata team, call +91 96356 85435 or request a callback and a payroll specialist reviews your current setup within 30 minutes.