{"id":95,"date":"2026-03-16T18:42:34","date_gmt":"2026-03-16T18:42:34","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?p=95"},"modified":"2026-03-30T06:11:37","modified_gmt":"2026-03-30T06:11:37","slug":"zoho-payroll-india-guide","status":"publish","type":"post","link":"https:\/\/aaxonix.com\/resources\/zoho-payroll-india-guide\/","title":{"rendered":"Zoho Payroll for Indian Businesses: PF, ESI, TDS Setup Guide"},"content":{"rendered":"<style>\n.ax-tip{background:#EFF6FF;border-left:4px solid #2563EB;padding:16px 20px;margin:28px 0;border-radius:0 8px 8px 0;font-size:.97em;line-height:1.6}\n.ax-warn{background:#FFF7ED;border-left:4px solid #E8650A;padding:16px 20px;margin:28px 0;border-radius:0 8px 8px 0;font-size:.97em;line-height:1.6}\n.ax-note{background:#F0FDF4;border-left:4px solid #16A34A;padding:16px 20px;margin:28px 0;border-radius:0 8px 8px 0;font-size:.97em;line-height:1.6}\n.ax-key{background:#F5F3FF;border-left:4px solid #7C3AED;padding:16px 20px;margin:28px 0;border-radius:0 8px 8px 0;font-size:.97em;line-height:1.6}\n.ax-table{width:100%;border-collapse:collapse;margin:28px 0;font-size:.94em}\n.ax-table th{background:#0A1628;color:#fff;padding:12px 14px;text-align:left;font-weight:600}\n.ax-table td{padding:11px 14px;border-bottom:1px solid #E5E7EB}\n.ax-table tr:nth-child(even) td{background:#F9FAFB}\n.ax-step{display:flex;gap:16px;margin:18px 0;align-items:flex-start}\n.ax-step-n{background:#2563EB;color:#fff;border-radius:50%;min-width:34px;height:34px;display:flex;align-items:center;justify-content:center;font-weight:700;font-size:1em;flex-shrink:0;margin-top:2px}\n.ax-step-body{flex:1}\n.ax-step-body strong{display:block;margin-bottom:4px;font-size:1em;color:#0A1628}\n.ax-facts{background:#0A1628;color:#fff;border-radius:12px;padding:28px 32px;margin:32px 0}\n.ax-facts h3{color:#E8650A;margin:0 0 16px;font-size:1.1em}\n.ax-facts ul{margin:0;padding-left:20px}\n.ax-facts li{margin-bottom:8px;line-height:1.6}\n.ax-verdict{background:#F0FDF4;border:1.5px solid #BBF7D0;border-radius:10px;padding:20px 24px;margin:28px 0}\n.ax-verdict strong{color:#15803D;display:block;margin-bottom:6px;font-size:1.05em}\n.ax-label{background:#EFF6FF;color:#2563EB;border-radius:4px;padding:2px 9px;font-size:.82em;font-weight:600;display:inline-block;margin-bottom:8px;text-transform:uppercase;letter-spacing:.04em}\n<\/style>\n<div class=\"sp-toc-wrap\"><nav class=\"sp-blog-toc\" id=\"spBlogToc\" style=\"display:none\">\n  <h4>\n    <svg width=\"14\" height=\"14\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"currentColor\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><line x1=\"8\" y1=\"6\" x2=\"21\" y2=\"6\"\/><line x1=\"8\" y1=\"12\" x2=\"21\" y2=\"12\"\/><line x1=\"8\" y1=\"18\" x2=\"21\" y2=\"18\"\/><line x1=\"3\" y1=\"6\" x2=\"3.01\" y2=\"6\"\/><line x1=\"3\" y1=\"12\" x2=\"3.01\" y2=\"12\"\/><line x1=\"3\" y1=\"18\" x2=\"3.01\" y2=\"18\"\/><\/svg>\n    On this page\n  <\/h4>\n  <ol class=\"sp-toc-list\" id=\"spTocList\"><\/ol>\n<\/nav><\/div>\n\n<script type=\"application\/ld+json\">\n{\"@context\":\"https:\/\/schema.org\",\"@type\":\"BlogPosting\",\"headline\":\"Zoho Payroll for Indian Businesses: PF, ESI, <a href=\"https:\/\/aaxonix.com\/resources\/zoho-books-tds-india\/\">TDS Setup<\/a> Guide\",\"description\":\"Complete guide to setting up Zoho Payroll for Indian businesses: PF, ESI, TDS computation, <a href=\"https:\/\/aaxonix.com\/resources\/zoho-ca-firms-india\">how CA firms use Zoho Payroll<\/a>s, and <a href=\"https:\/\/aaxonix.com\/resources\/zoho-payroll-statutory-compliance-india\/\" class=\"sp-content-link\">Zoho Payroll statutory compliance guide<\/a> compliance in 2026.\",\"author\":{\"@type\":\"Organization\",\"name\":\"Aaxonix\"},\"publisher\":{\"@type\":\"Organization\",\"name\":\"Aaxonix\",\"url\":\"https:\/\/aaxonix.com\"},\"datePublished\":\"2026-03-17\",\"url\":\"https:\/\/aaxonix.com\/resources\/zoho-payroll-india-guide\"}\n<\/script>\n\n<p>Managing payroll in India means handling PF, ESI, TDS, professional tax, LWF, and state-specific levies, all while generating salary slips, challans, and year-end Form 16. <a href=\"https:\/\/www.zoho.com\/payroll\/\" rel=\"noopener noreferrer\" target=\"_blank\">Zoho Payroll<\/a> India is built specifically for this. This guide walks through setting it up correctly from scratch, with common configuration mistakes to avoid.<\/p>\n<figure style=\"margin:36px 0;text-align:center;line-height:0;\"><img decoding=\"async\" src=\"https:\/\/aaxonix.com\/resources\/wp-content\/uploads\/2026\/03\/inline_95_1.jpg\" alt=\"Zoho Payroll India PF ESI TDS\" style=\"width:100%;max-width:820px;height:auto;border-radius:10px;box-shadow:0 4px 20px rgba(10,22,40,.13);\" loading=\"lazy\" \/><\/figure>\n\n\n<div class=\"ax-key\"><strong>Scope:<\/strong> Zoho Payroll for Indian private limited companies, LLPs, and proprietorships with salaried employees. Covers PF, ESI, TDS (Section 192), professional tax, and salary slip generation.<\/div>\n\n<h2>Zoho Payroll: What Is Included<\/h2>\n\n<table class=\"ax-table\">\n<thead><tr><th>Feature<\/th><th>Details<\/th><\/tr><\/thead>\n<tbody>\n<tr><td>Salary components<\/td><td>Basic, HRA, Special Allowance, LTA, Medical, custom components<\/td><\/tr>\n<tr><td>Provident Fund (PF)<\/td><td>12% employee + 12% employer; EPF + EPS split; ECR file generation<\/td><\/tr>\n<tr><td>ESI<\/td><td>0.75% employee + 3.25% employer for eligible employees; monthly challan<\/td><\/tr>\n<tr><td>TDS (Section 192)<\/td><td>Monthly TDS computation; Form 16 Part A and B at year-end<\/td><\/tr>\n<tr><td>Professional Tax<\/td><td>Maharashtra, Karnataka, West Bengal, and other states<\/td><\/tr>\n<tr><td>Salary slips<\/td><td>PDF salary slips emailed to employees automatically<\/td><\/tr>\n<tr><td>Bank transfer file<\/td><td>NEFT payment file in bank-specific format<\/td><\/tr>\n<tr><td>Reports<\/td><td>Payroll register, statutory reports, cost center reports<\/td><\/tr>\n<\/tbody>\n<\/table>\n\n\n<figure style=\"margin:36px 0;text-align:center;line-height:0;\"><img decoding=\"async\" src=\"https:\/\/aaxonix.com\/resources\/wp-content\/uploads\/2026\/03\/inline_95_2.jpg\" alt=\"HR payroll processing India\" style=\"width:100%;max-width:820px;height:auto;border-radius:10px;box-shadow:0 4px 20px rgba(10,22,40,.13);\" loading=\"lazy\" \/><\/figure>\n<h2>Step-by-Step: Setting Up Zoho Payroll for Your Company<\/h2>\n\n<div class=\"ax-step\">\n  <div class=\"ax-step-n\">1<\/div>\n  <div class=\"ax-step-body\"><strong>Company Setup<\/strong> Enter company name, registered address, PAN, TAN, PF registration number, ESI code, and professional tax registration. These appear on all statutory challans and Form 16.<\/div>\n<\/div>\n<div class=\"ax-step\">\n  <div class=\"ax-step-n\">2<\/div>\n  <div class=\"ax-step-body\"><strong>Pay Schedule<\/strong> Define your pay period (monthly is standard in India). Set pay date (e.g., last working day of the month or 1st of the following month). Zoho will remind you to run payroll before each pay date.<\/div>\n<\/div>\n<div class=\"ax-step\">\n  <div class=\"ax-step-n\">3<\/div>\n  <div class=\"ax-step-body\"><strong>Salary Components<\/strong> Configure your salary structure: Basic (typically 40-50% of CTC), HRA (50% of basic in metro, 40% in non-metro), Special Allowance (balance), and any other components your company offers. Mark each as taxable or exempt.<\/div>\n<\/div>\n<div class=\"ax-step\">\n  <div class=\"ax-step-n\">4<\/div>\n  <div class=\"ax-step-body\"><strong>PF Settings<\/strong> Enable PF. Set the PF wage ceiling (currently Rs 15,000\/month for ESI, Rs 15,000 for PF statutory rate). Decide if you will cap PF on Rs 15,000 or contribute on actual basic salary. Employee PF includes VPF option.<\/div>\n<\/div>\n<div class=\"ax-step\">\n  <div class=\"ax-step-n\">5<\/div>\n  <div class=\"ax-step-body\"><strong>ESI Settings<\/strong> Enable ESI for employees with gross salary up to Rs 21,000\/month. Zoho automatically excludes employees above this threshold. ESI is computed on gross less some allowances.<\/div>\n<\/div>\n<div class=\"ax-step\">\n  <div class=\"ax-step-n\">6<\/div>\n  <div class=\"ax-step-body\"><strong>Add Employees<\/strong> Enter each employee: name, DOB, PAN, Aadhaar, bank account, UAN, ESIC number, salary structure, date of joining. Zoho computes CTC and net take-home based on the salary structure assigned.<\/div>\n<\/div>\n<div class=\"ax-step\">\n  <div class=\"ax-step-n\">7<\/div>\n  <div class=\"ax-step-body\"><strong>Run Payroll<\/strong> At month-end, click &#8220;Run Payroll.&#8221; Zoho processes all employees, computes PF, ESI, TDS, PT, and generates the payroll summary. Review for anomalies before approving.<\/div>\n<\/div>\n<div class=\"ax-step\">\n  <parameter name=\"new_string\">  <div class=\"ax-step-n\">8<\/div>\n  <div class=\"ax-step-body\"><strong>Pay and File<\/strong> Download the bank transfer file and upload to your bank portal. Download ECR file for PF portal. Download ESI challan. Pay TDS via challan. Zoho tracks all these compliance payments.<\/div>\n<\/div>\n\n<h2>TDS on Salaries: How Zoho Handles It<\/h2>\n<p>Zoho Payroll computes TDS under Section 192 based on the employee&#8217;s projected annual income. The computation considers:<\/p>\n<ul>\n  <li>Gross salary minus standard deduction (Rs 75,000 under new tax regime)<\/li>\n  <li>HRA exemption (under old tax regime if employee opts for it)<\/li>\n  <li>Declared investments: 80C, 80D, HRA, LTA, housing loan interest<\/li>\n  <li>Tax slab rates (old or new regime as chosen by employee)<\/li>\n<\/ul>\n\n<div class=\"ax-tip\"><strong>New vs old tax regime:<\/strong> Employees must declare their preferred tax regime at the start of the financial year. Zoho Payroll supports both regimes. The employee can declare investments in Zoho&#8217;s employee portal, and TDS adjusts automatically each month.<\/div>\n\n<h2>Common Configuration Mistakes to Avoid<\/h2>\n\n<div class=\"ax-warn\">\n<strong>Mistakes that cause payroll errors:<\/strong>\n<ul>\n  <li>Setting PF on total CTC instead of basic salary: PF is computed on basic + DA only<\/li>\n  <li>Not updating the TAN before running payroll: TAN appears on TDS challans and Form 16<\/li>\n  <li>Forgetting Professional Tax for Maharashtra: PT slab in MH is Rs 200\/month for salaries above Rs 10,000<\/li>\n  <li>Not marking outstation allowances as exempt: travel allowances paid for official duty are not taxable<\/li>\n  <li>Running payroll before attendance is finalized: LOP (Loss of Pay) deductions must be entered before running payroll<\/li>\n<\/ul>\n<\/div>\n\n<h2>Integration with Zoho People for Attendance<\/h2>\n<p>Zoho Payroll integrates with <a href=\"https:\/\/aaxonix.com\/products\/zoho-people.html\">Zoho People<\/a> (<a href=\"https:\/\/aaxonix.com\/resources\/zoho-people-hr-india\/\">HRMS<\/a>). When connected:<\/p>\n<ul>\n  <li>Attendance data from <a href=\"https:\/\/www.zoho.com\/people\/\" rel=\"noopener noreferrer\" target=\"_blank\">Zoho People<\/a> flows to Payroll automatically<\/li>\n  <li>Approved leaves deduct from monthly working days<\/li>\n  <li>LOP (Loss of Pay) days are computed and salary is reduced proportionally<\/li>\n  <li>New joiners added in <a href=\"https:\/\/aaxonix.com\/products\/zoho-people\/\" class=\"sp-content-link\">Zoho People HR management<\/a> appear in Payroll automatically<\/li>\n<\/ul>\n\n<h2>Integration with <a href=\"https:\/\/aaxonix.com\/products\/zoho-books\/\" class=\"sp-content-link\">Zoho Books accounting features<\/a><\/h2>\n<p>Zoho Payroll connects to <a href=\"https:\/\/aaxonix.com\/products\/zoho-books.html\">Zoho Books<\/a> for <a href=\"https:\/\/aaxonix.com\/resources\/zoho-books-complete-setup-india\">Zoho Books accounting setup<\/a>. When payroll is approved:<\/p>\n<ul>\n  <li>Salary expense journal entry is posted to the correct cost centers in Zoho Books<\/li>\n  <li>PF and ESI liability accounts are credited<\/li>\n  <li>TDS payable is tracked as a current liability until challan is paid<\/li>\n  <li>No manual journal entries needed for payroll accounting<\/li>\n<\/ul>\n\n<h2>Frequently Asked Questions<\/h2>\n\n<h3>Does Zoho Payroll handle gratuity calculations?<\/h3>\n<p>Zoho Payroll tracks gratuity eligibility (employees completing 5 years of service) and shows the accrued gratuity liability. However, actual gratuity payment must be recorded manually as a separate payroll item when the employee leaves.<\/p>\n\n<h3>Can employees view their payslips in Zoho?<\/h3>\n<p>Yes. Zoho Payroll has an employee self-service portal. Employees log in to view their salary slips, Form 16, investment declarations, and leave balances. Payslips are also emailed automatically after each payroll run.<\/p>\n\n<h3>Does Zoho generate Form 24Q for quarterly TDS filing?<\/h3>\n<p>Yes. Zoho Payroll generates Form 24Q quarterly data for TDS returns. You can export this to your TDS filing software (e.g., TRACES or your CA&#8217;s tool) or file directly if Zoho adds direct filing in future updates.<\/p>\n\n<h3>What is the cost of Zoho Payroll in India?<\/h3>\n<p>Zoho Payroll starts at approximately Rs 50 per employee per month. For companies already on Zoho One, Payroll is included at no extra cost. Check the <a href=\"https:\/\/aaxonix.com\/tools\/zoho-pricing-calculator.html\">Zoho pricing calculator<\/a> for your team size.<\/p>\n\n\n<div class=\"ax-note\"><strong>Related reading:<\/strong> <a href=\"https:\/\/aaxonix.com\/resources\/zoho-people-hrms-india-guide\">Zoho People HRMS Complete Setup<\/a> &nbsp;\u00b7&nbsp; <a href=\"https:\/\/aaxonix.com\/resources\/zoho-books-complete-setup-india\">Zoho Books Complete Setup for India<\/a> &nbsp;\u00b7&nbsp; <a href=\"https:\/\/aaxonix.com\/resources\/zoho-ca-firms-india\">Zoho for CA Firms: Payroll Management<\/a> &nbsp;\u00b7&nbsp; <a href=\"https:\/\/aaxonix.com\/resources\/zoho-one-vs-individual-apps\">Zoho One vs Individual Apps: Pricing<\/a><\/div>\n<div class=\"ax-verdict\"><strong>Bottom line:<\/strong> Zoho Payroll is well-suited for Indian SMEs managing PF, ESI, TDS, and professional tax without dedicated payroll staff. When connected to Zoho People and Books, it eliminates duplicate data entry across HR and accounting. Setup takes 2-4 hours for most companies.<\/div>\n\n<p><a href=\"https:\/\/aaxonix.com\/contact.html\">Talk to Aaxonix<\/a> to get Zoho Payroll configured correctly for your company in Pune or anywhere in India.<\/p>\n<div class=\"fr-box\"><strong>Also See:<\/strong><ul>\n<li><a href=\"https:\/\/aaxonix.com\/resources\/zoho-pf-esi-setup-india\/\">PF and ESI Setup in Zoho Payroll<\/a><\/li>\n<li><a href=\"https:\/\/aaxonix.com\/resources\/zoho-payroll-integration-india\/\">Zoho Payroll Integration: People, Books and Attendance<\/a><\/li>\n<li><a href=\"https:\/\/aaxonix.com\/resources\/zoho-people-vs-darwinbox-india\/\">Zoho People vs Darwinbox for Indian HR<\/a><\/li>\n<\/ul><\/div>\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"HowTo\",\n  \"name\": \"Zoho Payroll for Indian Businesses: PF, ESI, TDS Setup Guide\",\n  \"description\": \"How to set up Zoho Payroll for Indian businesses -- PF, ESI, TDS, payslip automation, and compliance with Indian labour laws for companies of all sizes.\",\n  \"inLanguage\": \"en-IN\",\n  \"step\": [\n    {\n      \"@type\": \"HowToStep\",\n      \"name\": \"Zoho Payroll: What Is Included\",\n      \"text\": \"Feature Details Salary components Basic, HRA, Special Allowance, LTA, Medical, custom components Provident Fund (PF) 12% employee + 12% employer; EPF + EPS split; ECR file generation ESI 0.75% employee + 3.25% employer for eligible employees; monthly challan TDS (Section 192) Monthly TDS computation\"\n    },\n    {\n      \"@type\": \"HowToStep\",\n      \"name\": \"Step-by-Step: Setting Up Zoho Payroll for Your Company\",\n      \"text\": \"1 Company Setup Enter company name, registered address, PAN, TAN, PF registration number, ESI code, and professional tax registration. 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