Avani Business OS

Payroll Software India — PF, ESI, TDS Calculator & Salary Slip Generator

Best online payroll software India. Auto-calculate monthly salary with PF (12%), ESI (3.25%), TDS Section 192, Professional Tax. Generate PDF salary slips instantly. Used by companies in Delhi NCR, Mumbai, Bangalore, Pune.

At a glance

Features

Flexible Salary Structure Builder

Configure any salary structure: Basic, HRA (40–50% of basic as per metro/non-metro city), Dearness Allowance, Conveyance (₹1,600/month exempt), Special Allowance, LTA, Medical Reimbursement, and performance bonuses. Works for all Indian employment types — permanent, contract, and probation.

Automatic PF Calculation

Provident Fund calculated at 12% of basic wages for employee contribution and 12% employer contribution (3.67% towards EPF, 8.33% towards EPS). Monthly ECR file generated in the exact format required for EPFO portal upload — ready to submit on the 15th of every month.

ESI Computation & Filing

ESIC contributions computed at 0.75% (employee) + 3.25% (employer) on gross wages for all employees earning ≤ ₹21,000/month. The system flags eligibility changes, generates the monthly contribution statement, and produces return data for the ESIC portal submission.

TDS Under Section 192

Monthly TDS projection based on projected annual salary. Considers declared investments: 80C (EPF, ELSS, PPF, NSC up to ₹1.5L), 80D (health insurance), HRA exemption, standard deduction ₹50,000, and Section 10 exemptions. Adjusts TDS each month for shortfall/excess.

Professional Tax State-Wise

PT slabs configured for Maharashtra (up to ₹2,500/year), Karnataka (up to ₹2,400/year), West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, and Gujarat. The system auto-selects the slab based on each employee's work location and deducts the correct PT each month.

Salary Slip PDF Generator

One-click generation of professional salary slips for all employees. Each slip includes: earnings breakup, gross, all deductions (PF, ESI, TDS, PT, advance recovery, LOP), CTC vs take-home, and company letterhead with CIN/PAN. Employees download from self-service portal — no HR involvement.

Advance & Loan Recovery

Track salary advances and employee loans. Configure EMI-based or lump-sum recovery schedules. Deductions appear on salary slips with running balance. Finance team gets a real-time view of outstanding advances across all employees.

Bank-Ready Disbursement File

Export monthly salary disbursement as a bank transfer file in NEFT/RTGS format compatible with HDFC, ICICI, SBI, Axis, and Kotak corporate banking portals. Upload the file directly — no manual salary transfers, no errors.

Key benefits

How it works

  1. Set Up Salary Structures — Define salary components (Basic, HRA, allowances), PF eligibility, ESI eligibility, PT state, and TDS investment declarations for each employee or department. One-time setup — takes under an hour for a 100-person team. Import from Excel if you have existing salary data.
  2. Mark Attendance & Leaves — Attendance data flows in from the attendance module — daily punch records, approved leaves, LOP days, and holidays are all considered. Biometric CSV imports are processed automatically. No manual cross-referencing with Excel to calculate working days.
  3. Generate & Distribute Salary Slips — Click "Run Payroll" for the month. Avani calculates gross, all deductions, and net pay for every employee in seconds. Review, approve, and publish. Salary slips are instantly available in each employee's portal. Download the bank file and disburse.

Frequently asked questions

What is payroll software?

Payroll software automates the calculation of employee salaries, statutory deductions (PF, ESI, TDS, Professional Tax), and generation of salary slips. Indian businesses need it because manual payroll on Excel is error-prone, non-compliant (EPFO inspectors do check), and slow. A business with 30+ employees that still does payroll on Excel risks miscalculations, missed EPFO deadlines, and TDS defaults — each carrying penalties.

How does the software calculate Provident Fund (PF)?

Employee PF contribution is 12% of basic wages (or basic + DA). Employer contribution is 12% — split as 3.67% towards EPF and 8.33% towards EPS (Employee Pension Scheme). For employees with basic > ₹15,000/month, PF can be restricted to ₹15,000 (statutory limit) or calculated on actual basic — configurable per employee. The system generates the monthly ECR file for EPFO portal upload.

Who must contribute to ESI (ESIC)?

ESI applies to employees earning gross wages ≤ ₹21,000/month (₹25,000 for persons with disability) in establishments with 10 or more employees (20 in some states). The employer contributes 3.25% and the employee contributes 0.75% of gross wages. Avani tracks gross wage changes and automatically starts or stops ESI contributions when an employee's salary crosses the threshold.

How is TDS on salary calculated?

TDS under Section 192 is calculated on estimated annual taxable income from salary. Avani projects the full year salary, applies declared deductions (80C up to ₹1.5L, 80D, HRA exemption under Section 10(13A), standard deduction ₹50,000), computes the income tax liability under old or new tax regime as selected by the employee, and distributes it equally across the remaining months of the financial year.

Does it support Professional Tax in all states?

Yes. PT slabs are pre-configured for Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, and Gujarat — the states with Professional Tax. For employees working in states without PT (e.g., Delhi, Rajasthan, Uttar Pradesh), PT is not applied. Employees with multiple work locations in different PT states can be handled with manual PT override.

Can it handle mid-month salary revisions?

Yes. You can record a salary revision effective from any date within the month. The system pro-rates pay for the days before and after the revision date. Revised salary is reflected in the current month's payroll, and the old salary is preserved in history for reference — critical for increment letters and audit trails.

What formats does the bank disbursement file support?

The bank disbursement export supports NEFT/RTGS bulk payment formats compatible with HDFC NetBanking, ICICI Corporate Banking, SBI CINB, Axis Business Banking, and Kotak Corporate Net Banking. The file includes employee name, account number, IFSC code, and net salary. You upload it directly to your corporate banking portal to initiate bulk transfers.

How is payroll handled for resigned employees?

Yes. For resigned employees, Avani calculates salary for the days worked, recovers any pending advances or loans, deducts notice period shortfall if applicable, and generates the final settlement slip. PF and ESI are calculated on actual days' earnings. The system flags employees as resigned/terminated and prevents accidental inclusion in the next month's payroll run.

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