KLP Corporate Services provides comprehensive monthly statutory compliance solutions to ensure that organizations remain fully compliant with applicable Central and State labour laws, payroll regulations, and tax requirements. Our services are designed to minimize compliance risks, avoid statutory penalties and enable businesses to focus on their core operations.
Payroll Processing
The Employees' Provident Fund (EPF) is a statutory social security and retirement savings scheme administered by the Employees' Provident Fund Organisation (EPFO) under the Code on Social Security, 2020. The Employees' Provident Funds Scheme, 2026 has replaced the earlier 1952 scheme with updated provisions on membership, digital compliance, withdrawals and administration.
The Employees' State Insurance Corporation (ESIC) is a statutory social security organization under the Ministry of Labour & Employment, Government of India, established under the Employees' State Insurance Act, 2026. It provides medical care and financial protection to employees and their dependants in cases of sickness, maternity, employment injury, disablement and death.
Professional Tax (PT) is a state government tax levied on individuals who earn income through employment, profession, trade, or business. In Karnataka, it is governed by the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.
The tax collected is administered by the Commercial Taxes Department, Government of Karnataka. Followed with other States....
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Under the 2026 scheme:
Delayed remittance may attract:
ESIC The contribution rates remain 0.75% (employee) and 3.25% (employer) in 2026. While there has been discussion about increasing the wage ceiling, no final nationwide notification has yet changed the ₹21,000 eligibility limit.
Employees covered under ESIC are eligible for:
Failure to register eligible employees, delayed contribution payments, or incorrect filings may result in:
Professional Tax (PT) in Karnataka is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and administered by the Commercial Taxes Department, Government of Karnataka. Recent amendments effective from FY 2025–26 continue to apply in FY 2026–27.
- Monthly Gross Salary Professional Tax Up to ₹25,000 - Nil
- Above ₹25,000 Rs. ₹200 per month (January & March–December)
- February₹300
Professional Tax applies to:
Certain categories are exempt under the Act, including (subject to statutory conditions):
Failure to register, delayed payment, non-deduction, or late filing of returns may result in:
Tax Deducted at Source (TDS) is a mechanism under the Income-tax Act, 1961 through which tax is deducted by the employer at the time of payment of salary and deposited with the Income Tax Department on behalf of the employee. TDS ensures timely collection of income tax and helps employees meet their tax obligations throughout the financial year.
TDS on salary is applicable when an employee's estimated taxable income for the financial year exceeds the exemption limit prescribed under the Income-tax Act after considering eligible deductions, exemptions and the tax regime opted for by the employee.
The employer shall:
Employers are required to issue Form 16 to employees on or before 15 June following the end of the financial year.
Employees should:
Failure to comply with TDS provisions may result in:
Employers should maintain:
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