Editor's note (updated 27 Sep 2026). This post was first published on 4 May 2026. We have corrected or updated the following points.
- TDS returns are quarterly, not monthly. TDS is deposited monthly, by the 7th, and statements are filed each quarter. From Tax Year 2026-27, under the Income-tax Act 2025, they are Forms 138 (salary, formerly 24Q), 140 (non-salary, formerly 26Q) and 144 (non-resident payments, formerly 27Q).
- Advance tax dates made specific: 15 June, 15 September, 15 December and 15 March.
- Director KYC. From 31 Mar 2026 the annual DIR-3 KYC has been replaced by a DIR-3 KYC Web filing once every three years, plus updates when contact details change.
- "FEMA annual reporting" for an FDI-funded company means the FLA return by 15 July.
- CTC comparison. ESI does not apply at CFO salary levels, because the ESI wage ceiling is ₹21,000 a month. Employer PF is usually already inside CTC. The wording has been corrected.
- Staffing wording generalised. "CPA-qualified", a US designation, has been changed to "qualified". Engagement staffing is set out in each proposal.
"Virtual CFO" now covers everything from a one-person bookkeeping service to a full financial-management partnership. This article sets out what a good Virtual CFO service should deliver for an Indian entity, what it costs, and the signs that it is time to engage one.
The core deliverables
A Virtual CFO is not a bookkeeper and not just a compliance vendor. The service combines financial management, advisory and regulatory compliance in one engagement. At Shardhan it rests on four pillars.
Pillar 1: Monthly financial reporting (MIS)
Every month you receive a board-ready MIS pack, prepared within 5 business days of month-end close. It covers:
- P&L, balance sheet and cash flow
- receivables and payables ageing
- the KPIs that matter to your model: burn rate, gross margin and CAC/LTV for SaaS, inventory turns for manufacturers, utilisation for services
It also includes accruals for items that surprise foreign parents: gratuity and leave under the Labour Codes, bonus, and TDS and GST reconciliations.
Pillar 2: Statutory and regulatory compliance
The Virtual CFO owns the compliance calendar.
| Obligation | Frequency / due date |
|---|---|
| Advance tax | 15 Jun, 15 Sep, 15 Dec, 15 Mar (15% / 45% / 75% / 100%) |
| TDS deposit | Monthly, by the 7th (March deductions by 30 April) |
| TDS statements | Quarterly: Forms 138 / 140 / 144 (31 Jul, 31 Oct, 31 Jan, 31 May) |
| GST | GSTR-1 (11th, or quarterly under QRMP), GSTR-3B (20th; 22nd / 24th under QRMP), GSTR-9 / 9C by 31 Dec |
| Payroll statutory | PF and ESI by the 15th, PT and LWF by state (see our payroll calendar) |
| ROC | AOC-4 (within 30 days of the AGM), MGT-7 / 7A (within 60 days of the AGM), DIR-3 KYC Web (every three years) |
| Income-tax return | 31 Oct (audit cases), 30 Nov (transfer pricing cases) |
| Transfer pricing | Accountant's report by 31 Oct (Form 3CEB for FY 2025-26, Form 48 from TY 2026-27) |
| FEMA | FC-GPR within 30 days of allotment. FLA return by 15 July |
Pillar 3: Treasury and cash-flow management
A cross-border entity deals with inter-company funding, foreign-currency receipts, TDS on remittances and advance tax outflows. The Virtual CFO:
- runs a rolling 13-week cash forecast
- monitors working capital
- advises on funding the entity: equity, ECB under RBI's framework, or quasi-equity
- plans remittances with the right withholding and the remittance forms (Forms 145 / 146 from April 2026, formerly 15CA / 15CB)
- keeps enough liquidity for statutory payments
Pillar 4: Investor and board reporting
For funded entities, or subsidiaries reporting to an overseas board, reports include:
- variance analysis (actuals against budget)
- unit economics and cohort analysis
- forward cash-flow projections
Where needed they are prepared on the parent's framework, US GAAP or IFRS, with an Ind AS reconciliation.
Virtual CFO vs in-house CFO: the cost
An experienced CFO in India (CA or MBA Finance, 15+ years) typically commands ₹40–80 lakh CTC a year, or about ₹3.3–6.7 lakh a month. CTC usually already includes employer PF, often capped at the statutory wage ceiling. It excludes gratuity accrual, variable pay, recruitment costs, and the cost of the tax, FEMA, TP and payroll specialists a single CFO cannot cover alone. ESI does not apply at these salaries.
A Virtual CFO engagement gives a senior finance lead supported by specialists, at a fraction of that cost, and scales up or down with the business.
When should you engage a Virtual CFO?
- The India entity has 5+ employees and monthly transaction volumes that need professional financial management.
- You have missed compliance deadlines and need a systematic fix, especially in a year of change such as the Income-tax Act 2025, the Labour Codes and the new EPF ceiling.
- You are preparing for a Series A or B round and need audit-ready, investor-grade financials.
- Your overseas board is not getting timely, clear reporting from India.
- You have FEMA or transfer-pricing obligations your current bookkeeper cannot handle.
See how Shardhan's Virtual CFO service works. We assign a dedicated, qualified finance lead supported by our compliance and reporting team. Request a Virtual CFO proposal.
General information, not legal advice. Last reviewed 27 Sep 2026.