Payroll taxes refer to taxes that require mandatory payments made by an emoloyer and employee. It is a shared contribution managed through TDS.

Income tax is a direct tax on the annual income of an employee, governed by the Income Tax Act.

What is the difference between payroll tax and income tax?

Payroll tax is a mandatory contribution paid by employers and often deducted from employees) toward social security schemes, while income tax is a direct tax on an employee’s total annual income paid to the government.

Is payroll tax the same as income tax?

No payroll tax is different from income tax.

What are examples of payroll taxes?

Payroll taxes include Provident Fund (EPF), Employee State Insurance (ESI), and Professional Tax (PT).

Payroll tax vs income tax Archives

24/04/2026

Payroll Tax vs Income Tax: Key Differences, Calculation & Examples

Do you get stressed with your payroll systems and find it difficult to navigate them? […]

Payroll tax vs income tax

Payroll Tax vs Income Tax: Key Differences, Calculation & Examples

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