Payroll · inside your books

Payroll software that runs inside your accounting.

Salaries, PF, ESI, professional tax across 22 states, TDS on salary and full-and-final settlement — calculated for you and posted straight to your ledgers, not bolted on as a separate tool. Built by Chartered Accountants for Indian compliance.

Reviewed July 2026
5 min read
CA Anil Agarwal & the TatvaBooks team

What payroll software should do in India

Running payroll in India isn't really about the salary — it's about the statutory layer around it. Different wage ceilings for PF and ESI, a different professional-tax slab in every state, TDS on salary under Section 192 that has to be spread across the year. Get one of them wrong at scale and you're answering a notice. Payroll software exists to get that layer right, every month, for every employee.

TatvaBooks runs payroll inside your accounting, so every run posts straight to your books — no exporting, no re-keying, no reconciliation between a payroll app and your ledgers.

Statutory compliance, handled

Provident Fund (PF)

EPF with EDLI and admin charges computed on the wage ceiling, employee and employer shares split correctly, ECR-ready.

ESI

Employees' State Insurance deducted for eligible employees under the wage threshold, employer contribution posted alongside.

Professional Tax (PT)

State-wise PT slabs applied automatically across 22 states — the right slab for each employee's work state (see our professional tax guide).

TDS on salary (Sec 192)

Income tax on salary estimated across the year under the new or old regime, deducted month by month, ready for Form 24Q.

LWF

Labour Welfare Fund handled where the state levies it, on the state's cycle.

Gratuity & bonus

Gratuity provisioned per the Payment of Gratuity Act; statutory bonus where applicable — nothing tracked in a side spreadsheet.

Per-employee salary revisions are tracked over time, so a mid-year hike or structure change flows through correctly — arrears and all.

Payroll that posts to your books

Because payroll lives in the same product as your accounting, each run posts the salary expense, the statutory liabilities (PF, ESI, PT, TDS payable) and the net payable to the right ledgers automatically. Your cloud books always reflect what you actually paid — no monthly reconciliation between a separate payroll tool and Tally.

Full-and-final settlement, done right

When someone leaves, TatvaBooks computes the final settlement — pending salary, leave encashment, gratuity and any recoveries — and posts it to the books. The exit is clean, auditable, and doesn't turn into a spreadsheet argument three months later.

What it costs

Payroll is included on the Growth plan at ₹1,099/month for up to 25 employees — alongside your full accounting, GST and inventory, not as a separate subscription. Beyond 25 employees it's ₹30 per employee per month. Smaller teams on the Business plan (₹599/month) can add it as they grow.

Frequently asked questions

What is payroll software and do I need it in India?

Payroll software calculates salaries, statutory deductions (PF, ESI, PT, TDS) and net pay for your team, and produces payslips and the filings each department expects. In India the statutory side is the hard part — different wage ceilings, state-wise PT slabs, and Section 192 TDS. Once you have more than a handful of employees, doing it in Excel is where mistakes (and notices) creep in.

Is payroll included in TatvaBooks or a separate add-on?

Payroll is built into TatvaBooks — not billed as a separate product. It's included on the Growth plan (₹1,099/month) for up to 25 employees, and posts straight to your books, so salaries, PF, ESI and TDS hit the right ledgers automatically. Extra employees beyond 25 are ₹30/employee/month.

Which statutory deductions does it handle?

PF (with EDLI and admin charges), ESI, Professional Tax across 22 states, TDS on salary under Section 192, LWF where applicable, and gratuity and bonus provisioning. Full-and-final settlement is handled when someone leaves.

Does payroll post to my accounts automatically?

Yes — that's the point of having payroll inside your accounting software. Each payroll run posts the salary expense, the statutory liabilities and the net payable to the correct ledgers in the same system, so your books are always in step with what you actually paid.

Can it handle full-and-final settlement?

Yes. When an employee leaves, TatvaBooks computes the final settlement — pending salary, leave encashment, gratuity and recoveries — and posts it to the books, so the exit is clean and auditable.

Is there a limit on employees?

The Growth plan includes payroll for up to 25 employees; beyond that it's ₹30 per employee per month. Larger teams and firms with special needs can talk to us about the Enterprise option.

Keep going.

Compliance reference

The product

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Payroll + accounting, one product

Run payroll where your books already are.

PF, ESI, PT, TDS and full-and-final — calculated for you and posted to your ledgers. Start free and add payroll when your team grows.

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