Utilization-based variable pay, per-diem allowances on client-site days, deal-closure bonuses, partner profit draws for LLPs. The defaults match how Indian boutique to mid-tier consulting firms compensate their teams.
Each row is a pain point we've heard from operators in this vertical — and the specific FastLegal Payroll feature that addresses it.
ProblemUtilization tracked in a separate billing tool; bonus calculated months later from a CSV export.
FastLegal solvesUtilization Bonus is a built-in Bonus Type (25% of basic default), paid quarterly. Admin enters the per-employee amount based on the billing system's report; engine handles the rest.
ProblemPer-diem for client travel handled via expense reimbursement — taxable treatment unclear.
FastLegal solvesPer Diem is a built-in reimbursement component (₹5,000/mo default, non-taxable up to actuals). Separate from the taxable Special Allowance, so Form 16 reads correctly.
ProblemPartner profit draws in an LLP need to be paid quarterly but most payroll systems only do salary.
FastLegal solvesPartner Draw is a built-in ad-hoc bonus type. Pay each partner per the LLP deed; engine treats it correctly as partner remuneration u/s 40(b) (for the firm) and as salary income (for the partner).
ProblemSenior consultants need certification leave for exams (CFA, PMP, AWS) but it's not in the standard CL/SL list.
FastLegal solvesCertification Leave (5 days/year, paid) and Project Rest Leave (10 days/year, post-intense-engagement) pre-loaded on the Consulting industry profile.
ProblemManager wants books and professional-development budget reimbursement — auditors flag it as taxable.
FastLegal solvesBooks & Professional Development is a built-in non-taxable reimbursement up to ₹2,000/mo (₹24,000/yr) per Section 17(2)(iiia) employer welfare exemption.
ProblemDesignation hierarchy is partner → director → principal → manager → senior associate — generic systems don't model this.
FastLegal solvesIndustry profile pre-loads the full consulting designation ladder (14 titles, categorised into Senior Leadership / Management / Consulting Track / Entry Track) on the Designations page.
Indian consulting firms typically pay three flavours of variable comp: utilization-linked (every quarter), deal-closure (ad-hoc when the originator's case closes), and referral (ad-hoc when a hire joins).
Three non-taxable reimbursement components that the typical consulting firm pays but accountants sometimes get wrong. Pre-loaded on the consulting industry profile.
12 departments split into Practice (Strategy / Tax / M&A / Audit / Risk etc.) and Support (Research / BD / KM / People / Finance). 14 designations from Analyst to Managing Partner. Onboarding new hires picks from these — no free-text drift.
FastLegal Payroll references each of these frameworks correctly in its payslips, PDFs and statutory exports.
Partner draws are remuneration u/s 40(b) of the Income-tax Act for the firm; salary income for the partner.
Employer-provided books and journals exempt up to ₹24,000/year.
Section 392 for salary TDS; Section 393 for any contractor / vendor TDS from FY 2026-27.
State-wise registration. Most consulting firms are in Maharashtra, Karnataka, Delhi, Tamil Nadu.
Basic + DA ≥ 50% of CTC. Auto-enforced on the Consulting salary structure.
Utilization Bonus is a built-in Bonus Type (25% of basic default). Each quarter, your billing system tells you each consultant's utilization. You create a Bonus Grant on the employee for the calculated amount; FastLegal adds it to that month's payslip and annualises it for TDS.
Yes. Partner Draw is a built-in ad-hoc bonus type. Each draw is recorded as a salary payment to the partner — which the partnership treats as remuneration u/s 40(b) and the partner declares as salary income. The annual aggregate flows into Form 16 (or Form 130 from FY 2026-27).
Per Diem is configured as a non-taxable reimbursement component (₹5,000/mo default). Per Section 10(14)(i) of the ITA, daily allowances ordinarily incurred for travel away from the usual place of duty are exempt up to actuals. Make sure your expense policy keeps documentation for each travel day.
Yes. The Consulting industry profile pre-loads 14 designations (Managing Partner → Senior Partner → Partner → Principal → Director → Senior Manager → Manager → Senior Associate → Associate → Analyst → Business Analyst → Intern, plus Senior Consultant and Consultant) categorised into Senior Leadership / Management / Consulting Track / Entry Track.
Books & Professional Development is a built-in non-taxable reimbursement (₹2,000/mo) per Section 17(2)(iiia) of the ITA, which exempts employer-provided books and journals up to ₹24,000/year. Certification Leave (5 days/year) covers exam-day off for CFA, PMP, AWS etc.
Create a workspace, bootstrap the standard Indian defaults (leave types, salary structure, holidays for two years), add your first employee, and run May payroll — all before your evening chai.