This blog describes rules for ESI and PF Deduction, where ESI is Employee State Insurance (ESI) and PF is Provident Fund (PF). These are two social security schemes available to employees working in India. However, payroll administrators often struggle to keep up with the latest standards in these 2 areas. This leads to wrong deductions and deposits, queries from government departments, the dreaded scrutiny, and even fines. Significant information is available on the web and the government websites. But that is often contradictory, confusing, poorly written, or sometimes even wrong or misleading. This blog explains both schemes and describes the Rules of ESI and PF Deduction in detail. These rules are updated in this post whenever there are changes in government schemes. This helps you implement Best Practices of Payroll Processing in your organization. Employees’ State Insurance (ESI) Scheme ESI is a contributory fund that enables Indian employees to participate in a self-f...
With the Budget 2025 around the corner, Finance Minister Nirmala Sitharaman and her team are set to revamp and prioritize the long-awaited Direct Tax Code. The major focus of the new Direct Tax Code 2025 will be to streamline and simplify the Income Tax Act, making it concise and easy to read. This initiative addresses the complexity of the current laws, which contain hundreds of sections, deductions, and exemptions, making it difficult for Indian taxpayers to understand. This guide will help you understand the Direct Tax Code in detail, the key changes and expectations. Contents What is the Direct Tax Code? What is the Importance of a Direct Tax Code? Taxpayer Expectations from the Direct Tax Code What are the Benefits of Direct Tax Code 2025? Tax Structure Under Direct Tax Code Frequently Asked Questions What is the Direct Tax Code? The Direct Tax Code aims to simplify and standardize India's complex Income Tax Laws. Noticing the slow growth in the number of people contributing t...