Statutory challan preparation refers to the process of preparing and submitting payment forms or challans for statutory deductions or contributions related to payroll and compliance with various regulatory authorities.

Types of Statutory Challans:

• Income Tax Challan (Form 280): Used for depositing income tax deducted at source (TDS) from employee salaries and other payments.
• EPF Challan (Form 12A): Used for depositing employee and employer contributions towards the Employees’ Provident Fund.
• ESI Challan: Used for depositing contributions towards the Employee State Insurance scheme.
• Professional Tax Challan: Used for depositing professional tax deducted from employee salaries in certain states.

Ensures compliance with statutory obligations and avoids penalties for late or incorrect submissions. Provides transparency in financial transactions related to statutory deductions and contributions. Prepares the organization for audits by regulatory authorities by maintaining accurate records and documentation.