Payroll Management Software India — PF, ESI, TDS Auto-Calculation

Best payroll management software for India. Auto-calculate PF (12%), ESI (3.25%), TDS (Sec 192), Professional Tax, generate salary slips & EPFO ECR. Works for all Indian states. Free trial — no card.

At a glance

Auto PF/ESI — Statutory Calculation
TDS Sec 192 — Old & New Regime
20 Minutes — Monthly Payroll Run
EPFO Ready — ECR File Export

Features

PF Auto-Calculation & ECR Export

Employee PF at 12% of basic wages. Employer split: 3.67% to EPF, 8.33% to EPS (capped at ₹15,000 basic). Monthly EPFO ECR file generated in the exact government format — upload directly to the EPFO portal by the 15th with zero manual entry.

ESI Computation for Eligible Employees

ESIC contributions at 0.75% (employee) + 3.25% (employer) on gross wages for employees earning ≤ ₹21,000/month. Auto-start and auto-stop when salary crosses the threshold. Monthly ESIC contribution statement exported for portal submission.

TDS Under Section 192 — Old & New Regime

Project annual taxable salary, apply declared deductions — 80C (up to ₹1.5L), 80D, HRA exemption under Section 10(13A), standard deduction ₹50,000 — and spread TDS equally across the financial year. Employee chooses old or new tax regime. Form 16 Part A and B data exported at year end.

Professional Tax — State-Wise Slabs

PT pre-configured for states where it applies: Maharashtra (₹200/month, ₹2,500 in February for salaries above ₹10,000), Karnataka (slab-based up to ₹2,400/year), Tamil Nadu (₹182/month), Kerala (local body levy ~₹120/month), Telangana and AP (₹200/month max). Zero PT applied for Delhi, UP, Haryana, Rajasthan, Punjab, Chandigarh, and Gujarat employees.

Salary Slip PDF Generation

One-click salary slips for all employees — earnings breakup, gross, all deductions (PF, ESI, TDS, PT, advance recovery, LOP), net take-home, and CTC. Published to employee self-service portal instantly after payroll approval. No HR involvement in distribution.

LOP & Attendance-Linked Payroll

Loss of Pay deductions calculated automatically from attendance records — working days, approved leaves, holidays, and unauthorized absences. No manual formula updates in Excel. LOP per day = monthly salary / working days in month.

Key benefits

Monthly payroll that took 2 days in Excel now runs in 20 minutes with zero errors
EPFO ECR and ESIC challans generated automatically — no risk of late filing penalties
TDS recalculates monthly for salary revisions, new joiners, and investment declaration changes
PT correctly applied or not applied per employee work location — no manual state check needed
Salary slips available on mobile the moment payroll is approved — no "please send my slip" requests
LOP calculated from actual attendance, not a manual estimate — employees cannot dispute deductions
Form 16 data ready at year end — employees access their own tax documents from self-service portal
Bank NEFT file generated — upload to corporate banking portal and disburse salaries in one step

How it works

Configure Salary Structures — Define components for each employee grade: Basic (typically 40-50% of CTC), HRA (40% of basic for non-metro, 50% for metro cities), DA, Conveyance (₹1,600/month standard), Special Allowance, and performance bonus. Import from Excel if you already have salary data. One-time setup for unlimited future payroll runs.
Attendance Flows In Automatically — Attendance module sends daily records — punch-ins, approved leaves, LOP days, and holidays — directly to payroll. No manual cross-referencing. Biometric CSV imports are processed automatically. The payroll engine knows exactly how many days each employee worked.
Run Payroll and Distribute — Click "Run Payroll" for the month. All deductions calculated in seconds. Review the payroll register, make corrections if needed, and approve. Salary slips go live in employee self-service, the EPFO ECR file is ready for download, and the bank NEFT file is generated for bulk salary transfer.

Frequently asked questions

What is payroll management software for Indian businesses?

Payroll management software automates salary calculation, statutory deductions (PF, ESI, TDS, Professional Tax), salary slip generation, and government compliance filings. It is critical for Indian businesses because manual payroll is error-prone and non-compliant — EPFO inspectors audit companies for incorrect PF calculations, and Income Tax notices are issued for TDS defaults. With 30+ employees, manual payroll on Excel consumes 2-3 days per month and still produces errors.

How is PF calculated in payroll software?

Employee PF contribution is 12% of basic wages (or basic + DA). Employer contribution is 12% — split as 3.67% EPF and 8.33% EPS. For employees with basic > ₹15,000/month, PF can be restricted to the ₹15,000 statutory wage ceiling or calculated on actual basic — configurable per employee. The system generates the monthly ECR (Electronic Challan cum Return) file in the format required for EPFO portal upload, due by the 15th of each month.

Which Indian states have Professional Tax rates?

Professional Tax applies in: Maharashtra (up to ₹2,500/year — ₹200/month except ₹300 in February for salaries above ₹10,000), Karnataka (up to ₹2,400/year on slab basis), Tamil Nadu (₹182/month for salaries above ₹21,000), Kerala (local body levy approximately ₹120/month), Telangana and Andhra Pradesh (up to ₹200/month). PT does NOT apply in Delhi, Uttar Pradesh, Haryana, Rajasthan, Punjab, Chandigarh, and Gujarat (abolished). Avani applies the correct PT or zero based on each employee's work state.

How does TDS under Section 192 work?

TDS under Section 192 is deducted from salary income. The payroll system projects annual taxable salary, applies the employee's declared deductions (Chapter VI-A investments, HRA exemption, standard deduction of ₹50,000), computes income tax under old or new tax regime, and distributes the liability across remaining months in the financial year. When salary is revised or new declarations submitted, TDS is recalculated and redistributed.

Can payroll software handle revisions and mid-month joining?

Yes. For mid-month joiners, salary is pro-rated based on the joining date — days worked in the month divided by total working days. For salary revisions, the system calculates at the old salary rate up to the revision date and at the new rate from the effective date. Both scenarios are handled automatically — no manual calculation. The revised salary and pro-rated amounts appear on the salary slip with a clear breakup.

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