HR Compliance Calendar 2026-27: Monthly Deadlines Every Indian Business Must Know

July 2, 2026 Shashank Yadav No comments yet

What Are the 3 Non-Negotiable Monthly Compliance Deadlines in India?

Every Indian employer must meet three recurring payroll compliance deadlines each month without exception. First, the TDS (Tax Deducted at Source) deposit must reach the government by the 7th of every month via Challan 281. Second, the Provident Fund (PF) contribution along with ECR filing must be completed by the 15th. Third, the ESI (Employees’ State Insurance) contribution is also due by the 15th. Missing even one of these deadlines triggers automatic interest charges and penalties that compound rapidly. There are no grace periods, no warnings, and no exceptions for small businesses.

This comprehensive HR compliance calendar covers every monthly, quarterly, half-yearly, and annual HR and payroll compliance deadline for FY 2026-27 (April 2026 to March 2027). It incorporates the sweeping changes brought by the Income Tax Act 2025 (replacing the 1961 Act), the new TDS return forms (Form 138 replacing Form 24Q, Form 140 replacing Form 26Q), and the New Labour Codes that became effective in November 2025. Whether you employ 5 people or 500, this calendar ensures you never miss a filing date, never pay avoidable penalties, and never face enforcement action from the EPFO, ESIC, or Income Tax Department.

Tools like SalaryBox — a mobile-first attendance and payroll app built for Indian SMBs — automate PF, ESI, and TDS calculations with built-in compliance reminders. With AI selfie attendance, GPS geofencing, and automated payroll, SalaryBox is free for up to 25 employees, making compliance accessible for businesses of every size. Bookmark this calendar, set your reminders, and let this guide be your month-by-month compliance companion throughout the financial year.

What Are the Key Monthly Compliance Deadlines?

Every month, Indian employers must complete the following statutory filings and payments. This table provides a quick-reference summary of recurring deadlines, the applicable form or challan, and the penalty for non-compliance. Print this table and pin it near your payroll workstation.

Deadline	Obligation	Form / Challan	Penalty if Late
7th of month	TDS deposit on salaries	Challan 281 (ITNS 281)	1.5% interest per month from deduction date
15th of month	PF ECR filing + contribution	ECR on EPFO Unified Portal	12% interest p.a. + 5-25% damages on arrears
15th of month	ESI contribution	ESIC Portal challan	12% interest p.a. on delayed amount
21st of month	Professional Tax deposit (select states)	State-specific PT challan	Varies by state: Rs 500 to Rs 5,000 penalty
Last day of month	Salary payment to employees	Payment of Wages Act, 1936	Rs 1,500 to Rs 7,500 fine per violation

Pro tip: SalaryBox generates PF ECR files, ESI challans, and TDS-ready salary registers automatically each pay cycle. The compliance dashboard shows upcoming deadlines with colour-coded urgency indicators, so your HR team never scrambles at month-end. The app is free for businesses with up to 25 employees.

What Does the Month-by-Month HR Compliance Calendar Look Like for FY 2026-27?

Below is the complete month-by-month breakdown of every compliance deadline from April 2026 through March 2027. Each month lists the exact date, the obligation, and any special notes. Use this as your master checklist throughout the financial year.

April 2026 — Start of New Financial Year

7 April: TDS deposit for March 2026 salaries via Challan 281. Note: For the month of March, the government extends the TDS deposit deadline to 30 April, so the 7 April date applies only to non-salary TDS.
15 April: PF contribution and ECR filing for March wages on the EPFO Unified Portal. Ensure UAN activation for all new joiners before filing.
15 April: ESI contribution for March wages via ESIC Portal. Verify that all IP numbers are correctly mapped.
15 April: Advance tax 4th instalment for FY 2025-26 (if applicable to employer entities). This is the final instalment covering 100% of estimated tax liability.
25 April: Professional Tax monthly return filing in states with monthly PT obligations (Maharashtra, Karnataka, West Bengal, etc.).
30 April: Extended deadline for TDS deposit for March salaries. This special extension applies only to TDS deducted in March of each year.
Action item: Start of new FY — collect updated Form 12BB declarations from all employees, issue new tax regime election forms under the Income Tax Act 2025, and update salary structures if minimum wage revisions apply.

May 2026

7 May: TDS deposit for April 2026 salaries via Challan 281. Ensure the new FY assessment year (AY 2027-28) is selected correctly on the challan.
15 May: PF contribution and ECR filing for April wages. First filing of the new FY — double-check employee wage registers for revised PF wage ceilings.
15 May: ESI contribution for April wages. If any employees crossed the Rs 21,000 ESI wage ceiling, update their contribution status.
25 May: ESI half-yearly return for the October to March period (previous half-year). File the ESIC Form on the portal with accident/sickness benefit data.
Action item: Review new Labour Code wage definitions. Under the Code on Wages, basic salary must constitute at least 50% of total remuneration, potentially increasing PF contribution amounts.

June 2026

7 June: TDS deposit for May salaries via Challan 281.
15 June: PF contribution and ECR filing for May wages.
15 June: ESI contribution for May wages.
15 June: Issue Form 16 / Form 16A to all employees for FY 2025-26. This is the certificate of TDS deduction that employees need for filing their income tax returns.
15 June: Advance tax 1st instalment for FY 2026-27 (15% of estimated annual tax liability). Applies to employer entities with estimated tax liability exceeding Rs 10,000.
Action item: Begin verifying Form 26AS / AIS (Annual Information Statement) alignment for all employees to ensure TDS credits match before the ITR filing rush in July.

July 2026 — Major Filing Month

7 July: TDS deposit for June salaries via Challan 281.
15 July: PF contribution and ECR filing for June wages.
15 July: ESI contribution for June wages.
31 July: Form 138 (formerly Form 24Q) Q1 TDS return for salary payments made during April to June 2026. This is the first quarterly TDS return under the new Income Tax Act 2025 form numbering.
31 July: Annual PF return filing on the EPFO portal. Reconcile all 12 months of PF contributions, wages, and employee details.
31 July: Income Tax Return (ITR) filing deadline for individual employees and non-audit entities for AY 2027-28.
Action item: This is the busiest compliance month of the year. SalaryBox users benefit from auto-generated Form 138 data exports and PF reconciliation reports that cut filing time by up to 70%.

August 2026

7 August: TDS deposit for July salaries via Challan 281.
15 August: PF contribution and ECR filing for July wages.
15 August: ESI contribution for July wages.
15 August: Independence Day — a national gazetted holiday. Ensure paid leave is recorded for all eligible employees. If operations require attendance, overtime and compensatory off rules under the Factories Act apply.
Action item: Mid-year review of compliance status. Check that all TDS challans, PF ECR receipts, and ESI payment acknowledgements are filed and archived. Reconcile any discrepancies before Q2 closes.

September 2026 — Bonus Season

7 September: TDS deposit for August salaries via Challan 281.
15 September: PF contribution and ECR filing for August wages.
15 September: ESI contribution for August wages.
15 September: Advance tax 2nd instalment for FY 2026-27 (45% of estimated annual tax liability, cumulative).
30 September: Deadline for payment of statutory bonus under the Payment of Bonus Act, 1965. Bonus must be paid within 8 months of the close of the accounting year (if your accounting year ended 31 January, the deadline is 30 September). For companies with March year-end, bonus is typically paid by November.
Action item: Calculate bonus eligibility — employees earning up to Rs 21,000 per month are entitled to minimum bonus of 8.33% (up to a maximum of 20%) of salary or Rs 7,000 per month, whichever is higher.

October 2026 — Q2 Return Filing

7 October: TDS deposit for September salaries via Challan 281.
15 October: PF contribution and ECR filing for September wages.
15 October: ESI contribution for September wages.
31 October: Form 138 (formerly Form 24Q) Q2 TDS return for salary payments made during July to September 2026.
31 October: ITR filing deadline for entities requiring audit (companies, firms with turnover above threshold). Also the deadline for tax audit report filing.
Action item: Reconcile Q2 TDS data with salary registers. SalaryBox auto-generates quarter-wise TDS summaries that map directly to Form 138 schedules, reducing filing errors.

November 2026 — ESI Return

7 November: TDS deposit for October salaries via Challan 281.
15 November: PF contribution and ECR filing for October wages.
15 November: ESI contribution for October wages.
25 November: ESI half-yearly return for the April to September period. File the return on ESIC Portal with all contribution details, employee records, and IP-based data for the first half of the financial year.
November end: For companies with March accounting year-end, the practical deadline for statutory bonus payment under the Payment of Bonus Act (within 8 months of 31 March = 30 November).
Action item: Review ESI coverage. Any employees whose wages increased above Rs 21,000 during April-September may need to be de-registered from ESI for the next contribution period.

December 2026 — Advance Tax Q3

7 December: TDS deposit for November salaries via Challan 281.
15 December: PF contribution and ECR filing for November wages.
15 December: ESI contribution for November wages.
15 December: Advance tax 3rd instalment for FY 2026-27 (75% of estimated annual tax liability, cumulative). This is a significant instalment — ensure adequate cash flow planning.
Action item: Begin year-end planning. Send reminders to employees to submit updated investment declarations (Form 12BB) by mid-January for accurate TDS computation in the final quarter.

January 2027 — Investment Declaration Collection

7 January: TDS deposit for December salaries via Challan 281.
15 January: PF contribution and ECR filing for December wages.
15 January: ESI contribution for December wages.
15 January: Internal deadline to collect updated investment declarations from all employees. While not a statutory deadline, this is critical for accurate TDS computation in February and March payrolls.
31 January: Form 138 (formerly Form 24Q) Q3 TDS return for salary payments made during October to December 2026.
Action item: SalaryBox allows employees to submit investment declarations directly through the mobile app, with AI-powered document verification for rent receipts, insurance policies, and 80C proofs. This eliminates the paper chase that burdens HR teams every January.

February 2027 — Proof Collection and TDS Finalization

7 February: TDS deposit for January salaries via Challan 281.
15 February: PF contribution and ECR filing for January wages.
15 February: ESI contribution for January wages.
28 February: Internal deadline to collect actual investment proofs (not just declarations) from all employees. Verify rent receipts, 80C investment proofs, home loan certificates, NPS statements, and health insurance premium receipts.
28 February: Finalize tax computations for March payroll. Calculate excess TDS deducted or shortfall for each employee. Prepare adjustment schedules for the final March salary.
Action item: This is the most labour-intensive month for payroll teams. Cross-verify every employee’s declared investments against actual proofs submitted. Any unsubstantiated claims must result in TDS recalculation at higher rates. SalaryBox automates this reconciliation by matching declared amounts against uploaded proof documents.

March 2027 — Year-End Closing

7 March: TDS deposit for February salaries via Challan 281.
15 March: PF contribution and ECR filing for February wages.
15 March: ESI contribution for February wages.
15 March: Advance tax 4th and final instalment for FY 2026-27 (100% of estimated annual tax liability). Any shortfall attracts interest under Section 234B and 234C of the Income Tax Act 2025.
31 March: Gratuity valuation for all eligible employees (those with 5+ years of continuous service). Update gratuity liability in the books based on current salary levels.
31 March: Leave encashment reconciliation. Calculate accumulated earned leave balances and the corresponding financial liability for each employee.
31 March: Close FY 2026-27 payroll books. Ensure all salary payments, reimbursements, bonus payments, and statutory deductions are recorded. Generate final payroll summary reports.
31 March: Reconcile employer and employee PF contributions against ECR records for the full year. Any discrepancies must be resolved before April filing.
Action item: SalaryBox generates comprehensive year-end reports including employee-wise TDS summaries, PF contribution reconciliation, ESI payment registers, and gratuity liability statements — all exportable in formats compatible with government portal uploads.

What Are the Penalties for Missing HR Compliance Deadlines?

Non-compliance with payroll and HR statutory deadlines carries severe financial and legal consequences in India. The penalties are automatic in most cases — there is no warning system, no first-offence waiver, and no discretionary relief. The table below summarises the penalties for each type of violation. Understanding these consequences helps quantify the cost of non-compliance and justifies investment in automated compliance tools.

Compliance Area	Penalty / Interest	Legal Reference
PF Late Deposit	12% interest p.a. on delayed amount + damages ranging from 5% to 25% of arrears depending on delay duration	Section 14B, EPF & MP Act 1952; Para 32A of EPF Scheme
ESI Late Deposit	12% interest per annum on the amount of contribution due. Persistent default may lead to prosecution.	Section 85(a), ESI Act 1948
TDS Late Deposit	1.5% interest per month (or part of month) from the date of deduction to the date of actual deposit. Interest is calculated monthly, not daily.	Section 201(1A), Income Tax Act 2025 (formerly Section 201 of IT Act 1961)
TDS Late Filing	Rs 200 per day under Section 234E until the return is filed, capped at the total TDS amount. Late filing fee applies even if all TDS was deposited on time.	Section 234E, Income Tax Act 2025
TDS Penalty	Rs 10,000 minimum to Rs 1,00,000 maximum for failure to file TDS return within one year of the due date or furnishing incorrect information in the return.	Section 271H, Income Tax Act 2025
Professional Tax	Varies by state. Typically Rs 500 to Rs 5,000 per instance. Some states (Maharashtra) charge 1.25% interest per month on delayed payment.	State-specific Professional Tax Acts
Bonus Late Payment	Fine of Rs 1,000 to Rs 2,000 and/or imprisonment up to 6 months. Both the company and responsible officers can be prosecuted.	Section 28, Payment of Bonus Act 1965
Wages Late Payment	Fine of Rs 1,500 to Rs 7,500 per violation. Repeat offence attracts higher penalty and potential imprisonment up to 1 month.	Section 20, Payment of Wages Act 1936

Bottom line: A single missed PF deadline on a 50-employee payroll of Rs 10 lakhs can trigger Rs 12,000 in annual interest plus up to Rs 2,50,000 in damages. Automated compliance tools like SalaryBox eliminate these risks by calculating contributions in real-time and generating payment challans before every deadline.

What Changed in 2026-27 Compliance? Key Regulatory Updates

FY 2026-27 brings some of the most significant regulatory changes to Indian payroll compliance in decades. HR and payroll professionals must understand these changes to avoid inadvertent non-compliance. Here are the five major updates that affect every Indian employer.

1. Income Tax Act 2025 Replaces the 1961 Act

The new Income Tax Act 2025 came into effect from 1 April 2026, replacing the six-decade-old Income Tax Act 1961. While the substantive tax provisions remain largely similar, the section numbering, form numbers, and procedural references have changed entirely. All internal processes, tax computation sheets, and compliance checklists must be updated to reference the new Act and its section numbers. Training payroll staff on the new framework is essential.

2. New TDS Return Forms: Form 138 and Form 140

Form 24Q (quarterly TDS return for salary payments) has been replaced by Form 138 under the new Act. Similarly, Form 26Q (TDS on non-salary payments) is now Form 140. The form structure and data fields are largely unchanged, but filing must be done using the new form numbers on the TRACES portal. Any filing under the old form numbers will be rejected. SalaryBox has updated its TDS export modules to generate data in the new Form 138 format automatically.

3. New Labour Codes and the 50% Basic Salary Rule

The four New Labour Codes (Code on Wages, Industrial Relations Code, Social Security Code, and OSH Code) became effective in November 2025. The most impactful provision for payroll is the wage definition under the Code on Wages: basic salary plus dearness allowance must constitute at least 50% of total remuneration. This means companies that previously structured salaries with a low basic component (say 30-40%) now face higher PF contribution costs, as PF is calculated on basic salary. HR teams must restructure CTC breakups accordingly.

4. Updated TDS Slab Rates for FY 2026-27

The new tax regime (default regime under the Income Tax Act 2025) has updated slab rates for individual taxpayers. Employers must apply the correct slab rates when computing TDS on salaries. The old regime remains available as an opt-in choice, but employees must explicitly elect it. Payroll systems must support dual-regime TDS computation. SalaryBox handles both regime calculations and allows employees to switch regimes via the app with automatic TDS recalculation.

5. Digital Compliance and E-verification Requirements

EPFO and ESIC have progressively digitised their compliance frameworks. Aadhaar-based e-KYC is now mandatory for all new PF registrations. ESI claims processing is fully online. The Income Tax Department requires digital signatures for all employer TDS returns. These digital requirements mean that manual, paper-based compliance processes are no longer viable. Employers must adopt digital payroll and compliance platforms to meet regulatory expectations.

What Are the Quarterly, Half-Yearly, and Annual Compliance Deadlines?

Beyond the monthly deadlines, Indian employers must also meet periodic compliance obligations on a quarterly, half-yearly, and annual basis. The table below consolidates all non-monthly deadlines for quick reference.

Frequency	Deadline	Obligation	Form / Portal
Quarterly	31 July 2026	Q1 TDS Return (Apr-Jun)	Form 138 on TRACES
Quarterly	31 October 2026	Q2 TDS Return (Jul-Sep)	Form 138 on TRACES
Quarterly	31 January 2027	Q3 TDS Return (Oct-Dec)	Form 138 on TRACES
Quarterly	31 May 2027	Q4 TDS Return (Jan-Mar)	Form 138 on TRACES
Half-Yearly	25 May 2026	ESI Return (Oct-Mar period)	ESIC Portal
Half-Yearly	25 November 2026	ESI Return (Apr-Sep period)	ESIC Portal
Annual	15 June 2026	Issue Form 16 (FY 2025-26)	Generated from TRACES
Annual	31 July 2026	Annual PF Return	EPFO Unified Portal
Annual	31 July 2026	ITR Filing (non-audit)	Income Tax e-filing Portal
Annual	31 October 2026	ITR Filing (audit cases)	Income Tax e-filing Portal
Annual	30 September 2026	Bonus payment (Jan year-end)	Payment of Bonus Act 1965
Annual	31 March 2027	Gratuity valuation + Leave encashment reconciliation + FY close	Internal payroll records

Tip: Set calendar alerts for each of these periodic deadlines at least one week in advance. Better yet, use SalaryBox’s automated compliance reminder system, which sends push notifications to your phone 7 days, 3 days, and 1 day before every deadline — monthly, quarterly, half-yearly, and annual.

How Can SalaryBox Help You Stay Compliant Throughout FY 2026-27?

Managing compliance manually across PF, ESI, TDS, Professional Tax, and labour law obligations is error-prone and time-consuming. SalaryBox is a mobile-first attendance and payroll app designed specifically for Indian SMBs that automates the entire compliance lifecycle. Here is how it helps:

Automated PF/ESI/TDS Calculations: SalaryBox computes PF at 12% of basic, ESI at applicable rates, and TDS based on the employee’s declared regime and investments — all automatically during each payroll run. No manual formulas, no spreadsheet errors.
Compliance Dashboard with Deadline Alerts: A visual dashboard shows every upcoming deadline colour-coded by urgency (green, amber, red). Push notifications arrive on your phone 7 days, 3 days, and 1 day before each deadline.
One-Click Challan Generation: Generate PF ECR files, ESI challans, and TDS Challan 281 data in the formats required by government portals. No reformatting or data re-entry needed.
AI Selfie Attendance with GPS Geofencing: Ensure accurate attendance records that feed directly into payroll. GPS geofencing prevents proxy attendance, and AI-powered selfie verification confirms employee identity. Accurate attendance means accurate salary calculations and compliant PF/ESI contributions.
Employee Self-Service for Investment Declarations: Employees submit Form 12BB investment declarations and upload proof documents through the SalaryBox app. HR reviews and approves digitally — no paper forms, no missing documents, no last-minute scramble.
Year-End Reports and Form 16 Data: Auto-generate employee-wise TDS summaries, PF reconciliation reports, ESI contribution registers, and data for Form 16 issuance. Export in Excel and PDF formats for auditor review.
Free for Up to 25 Employees: Small businesses and startups can access the full compliance automation suite at zero cost. Paid plans scale affordably as the team grows beyond 25.

Frequently Asked Questions About HR Compliance Calendar 2026-27

Q1: What happens if my PF payment is delayed by just one day?

Even a single day of delay triggers the 12% per annum interest charge under Section 14B of the EPF Act. In addition, the EPFO Regional Commissioner can levy damages ranging from 5% to 25% of the arrear contribution amount depending on the length of delay. There is no grace period or waiver for first-time offenders. The interest is calculated from the 16th of the month (the day after the due date) until the actual date of deposit. Automated payroll tools like SalaryBox ensure contributions are calculated and challan data is ready well before the 15th.

Q2: Is the TDS deposit deadline of 7th applicable to all types of TDS?

Yes, the 7th of every month is the deadline for depositing TDS deducted during the previous month, applicable to both salary (Section 192) and non-salary TDS. The only exception is TDS deducted in March, where the deadline extends to 30th April. For government deductors, TDS must be deposited on the same day of deduction. The penalty for late deposit is 1.5% per month interest from the date of deduction, not from the due date. This means the interest clock starts ticking from the actual date you deducted TDS from the employee’s salary.

Q3: What are the new form numbers for TDS returns under the Income Tax Act 2025?

Under the Income Tax Act 2025 (effective 1 April 2026), Form 24Q for quarterly salary TDS returns is replaced by Form 138. Form 26Q for non-salary TDS returns is replaced by Form 140. The TRACES portal has been updated to accept filings only under the new form numbers. The data fields and structure remain substantially similar to the old forms, but employers must update their payroll software and processes to reference the new form numbers. SalaryBox already generates TDS data exports in the Form 138 format.

Q4: How does the 50% basic salary rule under the New Labour Codes affect PF?

Under the Code on Wages, basic salary plus dearness allowance must constitute at least 50% of an employee’s total remuneration (CTC). Previously, many companies structured salaries with basic at 30-40% of CTC, with the rest distributed as HRA, special allowance, and other components. Since PF is calculated on basic salary, this restructuring effectively increases the PF-eligible wage base and consequently the employer’s PF contribution cost. Companies that have not yet restructured their salary breakups to comply with this rule risk retrospective PF liability claims from the EPFO.

Q5: Can I file the ESI half-yearly return after the 25th May / 25th November deadline?

While the ESI return can technically be filed after the deadline, late filing may attract penalties and scrutiny from the ESIC. The half-yearly return for October-March is due by 25th May, and the April-September return is due by 25th November. The return must include details of all covered employees, their wages, contributions paid, and any accident or sickness benefit claims. Filing late can delay employee benefit disbursements and trigger inspection notices.

Q6: Is Professional Tax applicable in all Indian states?

No, Professional Tax is not levied by all states. As of FY 2026-27, states that impose Professional Tax include Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat, Madhya Pradesh, Kerala, Assam, Meghalaya, Odisha, Tripura, Jharkhand, Bihar, Chhattisgarh, and Sikkim. The rates, slabs, and payment frequency (monthly or half-yearly) vary by state. The maximum Professional Tax allowed under the Indian Constitution is Rs 2,500 per person per year. Employers must register for PT in each state where they have employees and deduct it from employee salaries.

Q7: When should I start collecting investment proofs for year-end TDS computation?

The practical timeline is: collect updated investment declarations by 15th January, set a deadline for submission of actual proofs by end of February, and finalize TDS computations in the first week of March for the March payroll. Starting this process late creates two risks: under-deduction of TDS (resulting in employer liability for the shortfall) or over-deduction (causing employee dissatisfaction and refund claims). SalaryBox streamlines this by allowing employees to upload proof documents via the mobile app throughout the year, with automated reminders starting in January.

Q8: How can a small business with fewer than 25 employees manage all these deadlines?

Small businesses are subject to most of the same compliance deadlines as large enterprises. The key difference is scale, not scope. PF registration is mandatory once you have 20+ employees (10+ in some notified establishments). ESI applies if wages are below Rs 21,000 per month. TDS applies regardless of company size if you pay salaries above the basic exemption limit. SalaryBox is free for businesses with up to 25 employees and automates PF, ESI, and TDS calculations, generates compliant challans, sends deadline reminders, and provides a compliance dashboard. This makes enterprise-grade compliance accessible to even the smallest businesses without hiring a dedicated payroll specialist.

Disclaimer: This compliance calendar is intended for general informational purposes only and does not constitute legal or tax advice. Compliance deadlines are based on information available as of July 2026 and may be subject to change through government notifications, circulars, or amendments. Always verify deadlines with official government portals (EPFO, ESIC, Income Tax e-filing) and consult a qualified tax professional or legal advisor for compliance decisions specific to your business.