How is TDS on salary worked out?

PrimoERP projects each employee’s tax for the year and spreads it over the months left. When investment declarations change, it works the tax out again, so March is not a surprise.

What happens when a rate or limit changes?

Rates and limits are kept as data in the India pack, so a change like the PF wage ceiling in September 2026 is a pack update, not a new version of PrimoERP. Months already closed are never rewritten.

Does it handle gratuity under the Labour Codes?

Yes. Gratuity is worked out under the Labour Codes, with service before and after the change worked out separately, as the India pack sets out.

Do employees get their payslips?

Yes. Each payslip is issued once, numbered, and the employee is told it is ready. A correction is a new version linked to the first, never an edit.

We use Tally or Excel for payroll today. Can we move?

Yes. We bring in your employees, salary structures, leave balances and joining dates, then check the first payroll run with you before you go live.

How long does it take to set up?

Setup, data migration and training come as an onboarding package with a published price, and we sit with you in go-live week.

Payroll Software for Indian Businesses

Does payroll week look like this?

be honest

A spreadsheet nobody wants to touch.
PF, ESI and TDS are worked out in columns. When a rule changes, like the PF wage ceiling in September 2026, every sheet needs fixing.
TDS catches up in March.
Investment proofs arrive late, the tax is made up in the last months, and take-home pay drops.
Attendance arrives after payroll.
Loss-of-pay days are found after the run, and fixed with a correction next month.

One payslip, from gross to net.

An illustration: one employee, one month, at the rates in the note above.

Basic and dearness allowance: 12,000
House rent allowance: 4,800
Other allowances: 2,400
Gross payfrom the salary structure: 19,200
PF, employee’s share12% of 12,000: −1,440
ESI, employee’s share0.75% of 19,200: −144
Net pay: 17,616

The payslip, the bank transfer and the books all start from these lines.

An illustration in ₹, not advice. The employer’s own PF and ESI shares are posted as expenses too. Professional tax and TDS are left out to keep it short.

Everything payroll needs, in your books.

Salary structures and payslips

Basic, DA, HRA and allowances, set once for each employee. Each month’s payslip is numbered in one series and kept as issued.

PF and ESI, every month

Employee and employer shares are worked out on the right wages, and kept as amounts owed until you pay them.

TDS spread over the year

Tax on salary is projected for the year under the regime each employee chose, spread over the months left, and worked out again when declarations change.

State rules, kept per state

Rules that differ by state are kept for each state. A figure a state has not notified yet stops the run with a clear message, never a guess. [Confirm professional tax in the India payroll pack.]

Attendance and leave feed pay

Loss-of-pay days come from attendance and approved leave before the run, and leave balances follow your state’s rules.

Posted to your accounts

A finished month posts salaries, PF, ESI and TDS owed, and advances recovered, to the ledger by itself, by cost centre.

Works with the rest of PrimoERP.

PrimoERP for IndiaAccounting, inventory, sales and payroll in one system, with India’s rules built in.Read more GST accountingGST on every invoice and bill, and each return’s totals read from your books.Read more GST e-invoicingEach e-invoice reported to the IRP from your books, with its IRN and QR code.Read more See double entry at workType what happened; PrimoERP writes the debits and credits.Read more

Payroll questions people ask us.

1.

Is PrimoERP payroll software for India?

Yes. Payroll is part of PrimoERP, with India’s rules in the India pack. PF, ESI and TDS on salary are worked out each month and posted to the same books as the rest of your business.

— the PrimoERP team

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