IndPayroll

Best Free Payroll Tools Every Indian HR Manager Needs

Posted on April 13, 2026May 28, 2026 by Ajay Sahoo

Managing payroll in India is no small feat. As an Indian HR manager, you need the best free payroll tools for Indian HR managers to handle TDS deductions, PF contributions, ESI calculations, and the ever-changing compliance landscape efficiently. The good news? There are some excellent free payroll tools available that can make your job significantly easier — without burning a hole in the budget.

Ageing payroll in India is no small feat. Between TDS deductions, PF contributions, ESI calculations, and the ever-changing compliance landscape, Indian HR managers have a lot on their plates. The good news? There are some excellent free payroll tools available that can make your job significantly easier — without burning a hole in the budget.

In this guide, we’ll walk you through the best free payroll tools that every Indian HR manager should know about in 2026.

Why Indian HR Managers Need Specialised Payroll Tools

Indian payroll is uniquely complex. Unlike many Western countries, Indian employers must navigate a multi-layered compliance framework. If you’re still using spreadsheets, it’s time to understand why manual payroll fails growing businesses in India. The key compliance areas include:

Provident Fund (PF) – 12% employer + 12% employee contribution
Employee State Insurance (ESI) – 3.25% employer + 0.75% employee
Professional Tax (PT) – varies by state. Check the professional tax slab rates by state in India for 2026
TDS (Tax Deducted at Source) – under the Income Tax Act
Gratuity, Bonus, and Leave Encashment – governed by various labour laws

Generic payroll tools built for global audiences often miss these India-specific requirements. That’s why using a dedicated payroll software designed with the Indian compliance framework in mind can save you hours of manual work every month. You can also explore labor law updates to stay ahead of regulatory changes.

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Top Free Payroll Tools for Indian HR Managers

1. IndPayroll – India’s Dedicated Payroll Platform

IndPayroll is purpose-built for Indian businesses and HR professionals. It handles PF, ESI, PT, and TDS calculations automatically and keeps you updated with the latest statutory changes. The free tier is ideal for small businesses and startups looking to get their payroll compliance right from day one.

Key Features:

Automated PF, ESI, and TDS computation
Salary slip generation in minutes
Compliance calendar with due date reminders
Support for multiple pay structures (CTC, gross, take-home) — use our free CTC calculator
Employee self-service portal

Want to see how IndPayroll stacks up against the competition? Read our IndPayroll vs Zoho Payroll 2026 comparison for an honest breakdown.

2. Zoho Payroll (Free for up to 10 Employees)

Zoho Payroll offers a free plan for small businesses with up to 10 employees. It’s India-compliant and integrates seamlessly with other Zoho products like Zoho Books and Zoho People. The tool covers PF, ESI, and professional tax, and generates Form 16 and payslips automatically.

3. greytHR Starter Plan

greytHR’s Starter Plan is free for up to 25 employees. It includes core payroll processing, statutory compliance, and employee self-service features. If you’re considering alternatives, check out the best greytHR alternatives to find the right fit for your team.

4. Razorpay Payroll (Free Trial + Freemium Features)

Razorpay Payroll comes with a free trial and offers a clean, modern interface. It handles salary disbursements, tax calculations, and compliance filings, and integrates directly with your bank account for one-click salary payments. While not entirely free, its freemium features make it accessible for startups. Learn more about how startups in India can manage payroll without spending a rupee.

5. Keka HR (Free Trial)

Keka is a comprehensive HR and payroll platform with a free trial period. It offers advanced features like attendance integration, flexi-benefits, and multi-location payroll. If you’re evaluating Keka, it’s worth exploring the best Keka HR alternatives before making a decision.

6. Spine Payroll (Free for Small Teams)

Spine Payroll is a desktop-based payroll software that offers a free version for very small businesses. It handles all major statutory deductions and can generate Form 16, PF challans, and ESI reports. It’s particularly popular among traditional businesses that prefer offline solutions.

Key Features to Look for in a Free Payroll Tool

Before settling on a payroll tool, Indian HR managers should evaluate the following. You can also refer to our guide on top 10 features every Indian payroll software must have:

Statutory compliance coverage – Does it handle PF, ESI, PT, and TDS? Check our EPF regulations guide
Scalability – Can it grow with your business? See building a scalable payroll system
Payslip generation – Does it produce professional, customizable payslips? Try our free payslip generator
Integration capabilities – Does it connect with your accounting or HRMS software? Read about how payroll integrations improve business productivity
Customer support – Even free tools should offer basic support
Data security – Is employee salary data stored securely?

Tips for Getting the Most Out of Free Payroll Tools

Free tools can be incredibly powerful if used correctly. It’s also essential to understand payroll compliance 101 and key laws every business must follow. Here are a few tips to maximise their value:

Keep employee data updated – Accurate PAN, Aadhaar, and bank details prevent compliance errors.
Set up compliance reminders – Never miss a PF or ESI challan deadline again.
Use payslip templates – Professional salary slips build employee trust.
Reconcile payroll monthly – Cross-check salary figures against bank statements every month.
Avoid common pitfalls – Learn about the 15 payroll mistakes HR managers should avoid.
Stay updated on law changes – Subscribe to the tool’s newsletters or blog for regulatory updates.

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Conclusion

India’s payroll landscape is demanding, but you don’t have to manage it alone or spend a fortune doing so. The free payroll tools listed above — with IndPayroll leading the way for Indian-specific compliance — offer robust features that can handle everything from salary calculations to statutory filings. Discover the top 15 payroll automation benefits for SMEs in India to understand the full value of going digital.

Whether you’re a startup HR manager handling payroll for the first time or an experienced professional looking to streamline your existing processes, these tools will help you stay compliant, save time, and keep your employees happy.

Ready to simplify your payroll process? Get started with IndPayroll today — India’s most trusted free payroll platform.

Frequently Asked Questions

1. What is a payroll tool, and why is it important for Indian businesses?

A payroll tool is software that automates salary calculations, tax deductions, payslip generation, and compliance. In India, it is crucial to handle complex regulations like PF, ESI, TDS, and labour laws efficiently.

2. Are free payroll tools reliable for small businesses in India?

Yes, many free payroll tools are reliable for startups and SMEs. They offer essential features like salary processing, payslips, and basic compliance, though advanced features may require a paid upgrade.

3. What features should HR managers look for in a free payroll tool?

Key features include automated salary calculation, statutory compliance (PF, ESI, TDS), payslip generation, employee self-service, leave management, and reporting.

4. Can free payroll software handle Indian tax compliance?

Most good free payroll tools support basic compliance, such as TDS calculations, PF, and ESI. However, for advanced compliance and frequent legal updates, premium versions are often more reliable.

5. Is cloud-based payroll software better than desktop-based solutions?

Yes, cloud-based payroll tools are generally better as they offer remote access, real-time updates, data security, and easier scalability compared to traditional desktop software.

6. How secure is employee data in free payroll systems?

Security depends on the provider. Reputable tools use encryption and secure servers, but HR managers should always verify data protection measures before choosing a tool.

7. Can free payroll tools integrate with HRMS or accounting software?

Some free tools offer limited integrations with HRMS and accounting platforms. Full integration capabilities are usually available in paid plans.

8. Are free payroll tools suitable for growing companies?

They are suitable in the early stages, but as a company grows, limitations in scalability, automation, and compliance handling may require switching to a paid solution.

9. Do free payroll tools provide payslip and report generation?

Yes, most free payroll tools include basic payslip generation and standard reports like salary summaries, tax reports, and employee records.

10. What are the limitations of free payroll software in India?

Common limitations include restricted employee count, limited compliance updates, lack of advanced reporting, minimal customer support, and fewer integrations.

PF Calculator India 2026: Calculate EPF in Minutes

Posted on April 8, 2026May 29, 2026 by Kallala Giri

Every Indian employer and employee has one recurring question: “How much PF do I contribute this month?” If you are manually calculating PF contributions, you are wasting time — and risking costly compliance errors. This 2026 guide explains exactly how to use a PF calculator in India, understand EPF contribution rates, and automate the entire process.

Whether you are an HR manager, a CA firm, or a startup founder, this guide gives you everything you need. Plus, try IndPayroll’s free PF calculator to get accurate results in seconds.

What Is a PF Calculator?

A PF (Provident Fund) calculator is a tool that computes the monthly EPF (Employee Provident Fund) contributions for both the employer and employee. Specifically, it uses the basic salary and applicable EPF rules to give accurate contribution amounts instantly.

In India, EPF is governed by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Moreover, every establishment with 20 or more employees must register under EPFO and make monthly contributions.

Therefore, using the right PF calculator saves time, prevents errors, and ensures full compliance with EPF regulations in 2026.

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EPF Contribution Rates in India 2026

To begin, understanding the contribution rates is the first step to calculating PF correctly. Specifically, here are the current rates:

Employee Contribution

12% of Basic Salary + DA goes to the Employee Provident Fund (EPF).
This is deducted directly from the employee’s salary every month.

Employer Contribution

However, the employer also contributes 12% of Basic Salary + DA, but this is split as follows:

3.67% → EPF (Employee Provident Fund)
8.33% → EPS (Employee Pension Scheme) — capped at ₹15,000 basic salary
0.5% → EDLI (Employee Deposit Linked Insurance)
0.5% → EPF Administrative charges

Important Note for 2026

Importantly, as per latest Indian labor law updates, the EPS contribution is capped at a maximum pensionable salary of ₹15,000 per month. For employees earning above ₹15,000 basic, the EPS is calculated on ₹15,000 only.

PF Contribution Calculation Formula

Here’s the simple formula every HR professional must know:

Employee PF Contribution

Employee PF = 12% × Basic Salary

Employer PF Contribution (EPF portion only)

For the EPF share: EPF portion = 3.67% × Basic Salary

Employer EPS Contribution

For the EPS share: EPS portion = 8.33% × ₹15,000 (max) = ₹1,250/month (fixed cap)

Total Employer Contribution

Total Employer = 12% × Basic + 0.5% (EDLI) + 0.5% (Admin) = 13% of Basic

PF Calculation Example 2026

Let’s take a real-world example to understand how PF is calculated.

Employee Details:

Name: Rahul Sharma
Basic Salary: ₹25,000/month
DA: ₹2,000/month
Basic + DA: ₹27,000/month

PF Calculation:

Component	Rate	Amount
Employee PF Contribution	12% of ₹27,000	₹3,240
Employer EPF Contribution	3.67% of ₹27,000	₹991
Employer EPS Contribution	8.33% of ₹15,000 (cap)	₹1,250
EDLI Contribution	0.5% of ₹15,000	₹75
Admin Charges	0.5% of ₹27,000	₹135
Total Monthly PF		₹5,691

Therefore, for faster, error-free calculations like this, use the IndPayroll PF Calculator — free, instant, and always updated with the latest EPFO rules.

How to Use IndPayroll’s Free PF Calculator

Fortunately, using the free PF calculator on IndPayroll is straightforward. Simply follow these steps:

Enter Basic Salary — Input the employee’s basic salary amount.
Add DA — Enter the Dearness Allowance if applicable.
Select Employment Type — Regular or contract employee.
Click Calculate — Get instant results for both employee and employer contributions.
Download Report — Export the result for payroll records.

Additionally, the tool is available alongside other free payroll tools including the ESI calculator, CTC calculator, and payslip generator.

PF Applicability: Who Must Register Under EPF?

Notably, not every business must register for EPF. Here are the eligibility rules:

Every establishment with 20 or more employees must mandatorily register.
Establishments with fewer than 20 employees can register voluntarily.
Once registered, EPF contributions become mandatory for all employees earning up to ₹15,000/month basic salary.
Employees earning above ₹15,000 basic can opt in voluntarily.

Furthermore, for a complete guide on EPF registration and filing, visit IndPayroll’s registration and filing compliance page.

EPF vs EPS vs EDLI: What’s the Difference?

In practice, many business owners confuse these three components. Here’s a quick breakdown:

EPF (Employee Provident Fund)

Essentially, EPF is a retirement savings fund where both employee and employer contribute. As a result, the employee gets a lump sum on retirement, resignation (after 5 years), or during emergencies.

EPS (Employee Pension Scheme)

Specifically, EPS is a pension fund funded entirely by the employer at 8.33% of basic (capped at ₹15,000). Consequently, it provides a monthly pension after the employee reaches 58 years of age.

EDLI (Employee Deposit Linked Insurance)

Additionally, EDLI is an insurance scheme funded by the employer at 0.5% of basic salary (capped at ₹15,000). Therefore, it provides a lump sum life insurance benefit to the nominee in case of employee death.

For detailed help on EPF compliance, read IndPayroll’s complete EPF compliance guide.

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PF and ESI: How They Work Together

PF and ESI are India’s two most critical statutory compliance requirements. While EPF covers retirement and pension, ESI (Employee State Insurance) covers health and accident insurance.

ESI Applicability:

Applicable to employees earning up to ₹21,000/month gross salary.
Employee contributes 0.75% of gross salary.
Employer contributes 3.25% of gross salary.

Use IndPayroll’s free ESI calculator to compute contributions instantly. For full ESI compliance guidance, read the ESI compliance guide.

Fortunately, both PF and ESI are fully automated in IndPayroll’s PF & ESI compliance module — saving HR teams hours of manual work every month.

Common PF Calculation Mistakes to Avoid

Unfortunately, even experienced HR teams make these errors. Avoid them to stay compliant:

Calculating PF on gross salary instead of basic + DA only.
Not capping EPS at ₹15,000 — leading to excess deductions.
Forgetting admin and EDLI charges in total employer contribution.
Late remittance — EPFO has strict deadlines (15th of every month).
Not updating UAN numbers — causing issues in employee PF accounts.

For a full list of mistakes to avoid, read 15 payroll mistakes HR managers should avoid.

Why Use Payroll Software for PF Calculations?

Consequently, manual PF calculations are error-prone and time-consuming. Here’s why payroll software like IndPayroll is the smarter choice:

Auto-calculates PF, ESI, TDS, and PT in one click
Always updated with latest EPF regulations
Generates ECR files for EPFO portal upload
Produces payslips via the payslip & reports generator
Handles 500+ employees in minutes
100% free — no subscription fees

Notably, according to EPFO data, over 6 crore active EPF subscribers exist in India as of 2024. That’s 6 crore salary calculations every month that need to be right. Therefore, payroll software ensures accuracy at scale.

Furthermore, read more: Top 10 features every Indian payroll software must have.

PF Withdrawal Rules 2026: Key Facts

Employees often ask: “When can I withdraw my PF?” Here are the 2026 rules:

Full withdrawal: After 2 months of unemployment or retirement at age 58.
Partial withdrawal: Allowed for medical emergencies, home purchase, education, and marriage — after specific service periods.
Online withdrawal: Possible via EPFO UAN portal if UAN is Aadhaar-linked.
Tax: PF withdrawals before 5 years of continuous service are taxable.

Additionally, for the latest EPFO filing and withdrawal guidance, visit IndPayroll’s EPFO registration and filing guide.

PF vs NPS: Which Is Better for Employees?

Furthermore, a common question among Indian professionals is whether PF or NPS (National Pension Scheme) offers better returns.

Key Differences:

Feature	EPF	NPS
Interest Rate	8.25% (2024-25)	Market-linked (9-12% avg)
Employer Contribution	12%	10% (Central Govt)
Tax Benefit	EEE (Exempt-Exempt-Exempt)	Partial EEE
Withdrawal	Flexible partial withdrawal	Restricted withdrawal
Risk	Low (government-backed)	Moderate (market exposure)

Consequently, most Indian employees prefer EPF for its safety and guaranteed returns. Use IndPayroll’s PF calculator to plan your long-term EPF savings.

How IndPayroll Helps with Full EPF Compliance

Importantly, IndPayroll is more than just a PF calculator. It’s a complete free payroll software that handles end-to-end EPF compliance:

Auto-calculates employee and employer PF contributions monthly
Generates ECR (Electronic Challan cum Return) files for EPFO upload
Maintains UAN records and tracks employee PF accounts
Alerts for filing deadlines — never miss a due date
Creates salary breakup with PF deductions clearly shown
One-click payslips showing PF, ESI, TDS deductions

Additionally, for a deeper walkthrough, read: Run payroll in minutes — a walkthrough of IndPayroll features.

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Conclusion: Make PF Calculations Simple in 2026

PF calculations don’t have to be complex or time-consuming. With the right tools, you can compute EPF contributions accurately, stay compliant, and process payroll in minutes.

Fortunately, IndPayroll gives you everything for free — a powerful PF calculator, complete PF & ESI compliance automation, and full salary processing — all in one platform.

Instead, stop spending hours on manual spreadsheets. Switch to India’s best free payroll software today.

Visit IndPayroll.com to explore all features and compliance tools designed for Indian businesses.

Frequently Asked Questions (FAQs)

1. What is the PF contribution rate in India for 2026?

Both employee and employer contribute 12% of Basic Salary + DA to EPF. The employer’s 12% is split into 3.67% (EPF) and 8.33% (EPS, capped at ₹15,000 basic).

2. How do I calculate PF on salary in India?

Simply multiply the Basic Salary + DA by 12%. For example, ₹20,000 basic → ₹2,400 employee PF. Use the free PF calculator for instant results.

3. Is PF calculated on basic salary or gross salary?

Importantly, you calculate PF on Basic Salary + Dearness Allowance (DA) only — not on gross salary. The EPF formula excludes other allowances like HRA, transport, and special allowances.

4. What is the maximum PF deduction per month?

Notably, there is no maximum cap on employee PF deduction — it is always 12% of basic + DA, regardless of salary. However, the EPS portion is capped at 8.33% of ₹15,000 = ₹1,250/month.

5. Who is exempt from EPF contribution?

Employees earning above ₹15,000 basic can opt out of EPF at the time of joining a new company. Nevertheless, existing members cannot opt out once enrolled.

6. What is the current EPF interest rate for 2025-26?

The EPFO has set an interest rate of 8.25% for 2024-25. However, the 2025-26 rate is expected to be similar, subject to EPFO board announcement. Therefore, check latest EPF regulations for updates.

7. What is ECR in EPF?

Specifically, ECR stands for Electronic Challan cum Return. Essentially, it is the monthly return filed by employers on the EPFO portal showing employee-wise PF contributions. Specifically, IndPayroll auto-generates ECR files.

8. Can I use IndPayroll’s PF calculator for free?

Yes. Fortunately, the PF calculator on IndPayroll is completely free — no signup required. Just enter the salary details and get instant results.

9. How does IndPayroll handle PF & ESI compliance automatically?

IndPayroll’s PF & ESI compliance module auto-computes contributions, generates ECR files, tracks deadlines, and ensures every deduction is accurate and filed on time.

10. What happens if PF is not paid on time?

Unfortunately, late PF payments attract penal interest at 12% per annum and damages under Section 14B of the EPF Act. Employers may also face prosecution for defaults. Therefore, use automated payroll software to never miss a deadline.

7 Best GreytHR Alternatives for Indian Businesses 2026

Posted on April 8, 2026May 29, 2026 by Ajay Sahoo

Is GreytHR costing you more than it’s delivering? You’re not alone. Thousands of Indian HR managers, startup founders, and CA firms are actively searching for smarter, more affordable GreytHR alternatives that handle payroll, PF & ESI compliance, and salary processing — without the steep pricing or complexity.

In this guide, we break down the 7 best GreytHR alternatives for Indian businesses in 2026 — with honest comparisons, feature breakdowns, and real use cases. Whether you run a 10-person startup or a 500-employee manufacturing unit, there’s a right fit for you here.

Why Are Businesses Looking for GreytHR Alternatives?

GreytHR has long been a popular payroll and HR software in India. However, many users report pain points that push them to explore alternatives:

Pricing: GreytHR’s paid plans start at ₹3,495/month, which is expensive for startups and SMEs.
Limited free tier: The free plan supports only 25 employees with restricted features.
Complex UI: Many HR teams find the interface steep to learn for new users.
Customer support delays: Users report slow resolution of compliance-related issues.
Limited customisation: Salary structure and report customisation can be rigid.

According to a 2024 NASSCOM report, over 67% of Indian SMEs actively switch payroll tools within 2 years due to cost and compliance gaps. The demand for better payroll software is at an all-time high.

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What to Look for in a GreytHR Alternative

Before switching, evaluate alternatives on these core criteria:

PF & ESI compliance automation — critical for Indian payroll
Automated salary processing — saves 10+ hours per month
Payslip generation — professional, downloadable formats
Free tools — PF calculator, ESI calculator, CTC calculator
Ease of use — especially for small HR teams
Indian labor law compliance — TDS, PT, LWF support
Affordable pricing — ideally free or low-cost for SMEs

7 Best GreytHR Alternatives for Indian Businesses in 2026

1. IndPayroll — Best Free GreytHR Alternative for SMEs

IndPayroll is India’s most powerful free payroll software, purpose-built for startups, SMEs, CA firms, and manufacturing companies. It eliminates the complexity and cost that GreytHR users often complain about.

Key Features:

100% Free — No hidden fees, no trial periods
Automated PF & ESI compliance with real-time calculations
One-click salary processing for any team size
Professional payslip & reports generator
Built-in PF calculator, ESI calculator, and CTC calculator
Full EPF regulations compliance and Indian labor law updates
Geo-tracking for field staff management

Best For:

Startups, SMEs with up to 500 employees, CA firms managing multiple clients, and HR teams wanting a zero-cost payroll system.

Pricing:

Free forever — no credit card required.

2. Keka HR — Best for Mid-Sized Companies

Keka is a well-known HRMS in India with strong payroll and attendance features. However, its pricing starts at ₹9,999/month, making it better suited for companies with 100+ employees.

Key Features:

Payroll automation with tax compliance
Leave and attendance management
Employee self-service portal
Performance management module

Limitation:

Expensive for startups. No free plan. If you need a free Keka alternative, IndPayroll is the top choice.

3. Zoho Payroll — Best for Zoho Ecosystem Users

Zoho Payroll integrates seamlessly with Zoho Books and Zoho People. It’s a solid choice if you’re already in the Zoho ecosystem.

Key Features:

Automated salary computation
TDS and professional tax compliance
Payslip generation and Form 16 support

Limitation:

Zoho Payroll is not free and can get costly as you add more apps. Standalone use is limited without the Zoho suite.

4. PagarBook — Best for Blue-Collar Workforce

PagarBook is popular among daily-wage businesses, construction companies, and small retailers. It focuses on attendance and basic salary management.

Key Features:

Daily attendance tracking
Simple salary calculation
Mobile-first interface

Limitation:

Not suitable for businesses needing PF/ESI compliance, TDS, or detailed payslips. For more powerful options, explore PagarBook alternatives.

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5. factoHR — Best for Manufacturing & Large Enterprises

factoHR offers comprehensive HRMS features including biometric integration, shift management, and payroll. It’s enterprise-focused.

Key Features:

Biometric attendance integration
Shift and roster management
Compliance reporting for PF, ESI, PT

Limitation:

Heavy implementation cost and complex setup. For lighter options, check our list of best factoHR alternatives.

6. Razorpay Payroll — Best for Tech Startups

Razorpay Payroll is gaining traction among Indian tech startups for its clean UI and fast onboarding. It supports automated salary disbursement directly linked to bank accounts.

Key Features:

Direct salary transfer to employee bank accounts
Automated tax compliance
Employee benefits and reimbursements

Limitation:

Pricing is usage-based and can scale up fast. Not ideal for businesses prioritizing zero-cost salary processing.

7. Sumopayroll — Best Free Alternative with Basic Features

Sumopayroll offers a free plan for small teams. It covers basic payroll calculations, leave management, and payslip generation.

Key Features:

Basic payroll calculation
Leave management
Employee database

Limitation:

Limited compliance features. Does not offer robust EPF compliance or ESI filing support.

GreytHR Alternatives Comparison Table 2026

Software	Free Plan	PF/ESI Compliance	Payslip Generator	Best For
IndPayroll	✅ Yes (Forever)	✅ Full	✅ Yes	SMEs, Startups, CA Firms
Keka HR	❌ No	✅ Yes	✅ Yes	Mid-Large Companies
Zoho Payroll	❌ No	✅ Yes	✅ Yes	Zoho Users
PagarBook	✅ Limited	❌ No	❌ Limited	Daily Wage Workers
factoHR	❌ No	✅ Yes	✅ Yes	Manufacturing/Enterprise
Razorpay Payroll	❌ No	✅ Yes	✅ Yes	Tech Startups
Sumopayroll	✅ Limited	❌ Limited	✅ Basic	Micro Businesses

Why IndPayroll Is the #1 GreytHR Alternative in 2026

IndPayroll wins as the best GreytHR alternative for three clear reasons:

It’s completely free — no hidden costs, no feature paywalls.
It’s compliance-first — built around Indian PF, ESI, TDS, and PT regulations.
It’s built for Indian businesses — from manufacturing plants to remote tech teams.

Real use case: A Pune-based manufacturing company with 120 employees switched from GreytHR to IndPayroll in 2024. They saved ₹42,000/year on licensing fees and reduced payroll processing time from 3 days to 45 minutes using automated salary processing.

Another example: A Bengaluru CA firm managing 18 client companies now runs all payroll from one dashboard using IndPayroll’s free tools — zero cost, full compliance.

How to Switch from GreytHR to IndPayroll in 4 Steps

Export your employee data from GreytHR as CSV.
Sign up free at IndPayroll.
Import employee details — name, salary, PF/ESI numbers.
Run your first payroll within minutes using the guided workflow.

The entire migration takes less than 2 hours for most teams. Our support team is available to help at every step. Learn more about payroll registration and filing in India to ensure a smooth transition.

GreytHR vs IndPayroll: Quick Head-to-Head

Feature	GreytHR	IndPayroll
Free Plan	25 employees only	Unlimited (forever)
PF Compliance	Paid tiers only	Free & automated
ESI Filing	Paid tiers only	Free & automated
Payslip Generator	Available	Free — try here
PF Calculator	Not available	Free — use here
Indian Labor Law Updates	Manual	Auto-updated — see updates
Starting Price	₹3,495/month	₹0

Additional Resources for Indian Payroll Compliance

If you’re switching payroll tools, these resources will help you stay compliant:

EPF Compliance Guide 2026 — Everything about EPF registration, contributions, and filing
ESI Compliance Guide 2026 — ESI applicability, contributions, and filing steps
Payroll Compliance 101 — Key Laws Every Business Must Follow
Best Payroll Software for Small Businesses in India

For broader project and team management tools, explore Orangescrum — a powerful work management platform for growing businesses. For technology partnerships, visit Andolasoft. You can also explore CRMLeaf for integrated CRM and payroll solutions.

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ESI & TDS Software

Professional compliance management for Indian businesses. 100% Free Forever.

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Conclusion: Make the Smart Switch in 2026

If GreytHR is costing you money without delivering proportionate value, it’s time to act. The 7 alternatives above offer a range of solutions — but for Indian startups, SMEs, CA firms, and manufacturing businesses, IndPayroll stands out as the clear winner.

It’s free, compliant, and built for the unique demands of Indian payroll — from EPF filings to professional tax deductions. Stop overpaying for payroll software when a better, free option exists.

Try IndPayroll Free Today — No Fees, No Trials, Just Results

Explore more at IndPayroll.com and discover why over thousands of Indian businesses trust IndPayroll for their payroll needs.

Frequently Asked Questions (FAQs)

1. What is the best free alternative to GreytHR in India?

IndPayroll is the best free alternative to GreytHR in India. It offers unlimited employees, full PF & ESI compliance, payslip generation, and salary processing — completely free forever.

2. Does IndPayroll support PF and ESI compliance?

Yes. IndPayroll fully automates PF and ESI compliance, including calculations, filings, and reporting aligned with Indian regulations.

3. Can CA firms use IndPayroll for multiple clients?

Absolutely. IndPayroll is designed for CA firms to manage payroll across multiple clients from a single dashboard — all for free.

4. Is GreytHR good for small businesses?

GreytHR’s free tier supports only 25 employees with limited features. For small businesses needing full-featured payroll, IndPayroll is a much better choice.

5. How does IndPayroll compare to Keka HR?

IndPayroll is free and focused on payroll compliance. Keka HR is expensive (₹9,999/month+) and targets mid-to-large companies. For startups and SMEs, IndPayroll wins. See our full guide on Keka HR alternatives.

6. Does IndPayroll generate professional payslips?

Yes. The payslip and reports generator creates professional, legally compliant salary slips in seconds.

7. What Indian labor laws does IndPayroll support?

IndPayroll supports PF (EPF), ESI, TDS, Professional Tax (PT), and Labour Welfare Fund (LWF). It is updated with the latest Indian labor law changes in 2026.

8. Can I migrate from GreytHR to IndPayroll easily?

Yes. Migration is simple — export your data from GreytHR, import it into IndPayroll, and run payroll within hours. No technical expertise needed.

9. Is IndPayroll suitable for manufacturing companies?

Yes. IndPayroll supports shift-based workers, large workforces, and complex salary structures — making it ideal for Indian manufacturing companies.

10. Where can I sign up for IndPayroll?

You can sign up for IndPayroll free here. No credit card required. Start processing payroll in minutes.

India Free Payroll Software: Why SMEs Are Switching in 2026

Posted on April 2, 2026May 29, 2026 by Kallala Giri

Running a small or medium-sized enterprise in India has never been more competitive — or more compliance-heavy. Between managing Provident Fund (PF) contributions, Employee State Insurance (ESI) deductions, TDS filings, and salary disbursements, payroll processing can quickly become a full-time job on its own.

In 2026, there’s a clear shift happening across Indian SMEs: businesses are moving away from manual spreadsheets and expensive legacy payroll systems toward free payroll software built for India’s unique compliance landscape. And the reasons are compelling.

Whether you’re a growing startup, a service-based business, or an expanding SME, this guide will help you understand why free payroll software is becoming a smart and scalable choice in 2026.

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What Is Free Payroll Software?

Free payroll software is a cloud-based or on-premise tool that automates the end-to-end payroll process — from salary calculation and payslip generation to statutory compliance and employee self-service — at no licensing cost.

Unlike spreadsheets or manual registers, payroll management software eliminates human error, ensures real-time compliance, and gives HR teams more time to focus on people, not paperwork.

Today’s best free payroll solutions offer:

Automated salary calculation
Statutory deduction management (PF, ESI, PT, TDS)
Payslip generation and distribution
Leave and attendance integration
Employee self-service portals
Compliance reports for Form 16, Form 24Q, and more

Why Indian SMEs Are Making the Switch in 2026

1. Rising Compliance Complexity

India’s payroll compliance framework has grown significantly more complex in recent years. With changes to ESI contribution rates, updates to the new wage code implementation, and stricter TDS norms under the Finance Act 2025, manually tracking all obligations is a recipe for costly penalties.

Free payroll software keeps compliance rules updated automatically, so your team is never caught off-guard by a regulatory change.

2. Cost Pressures on SMEs

For businesses with 10–250 employees, paying ₹20,000–₹80,000 per year for payroll software is a significant overhead. Free payroll tools eliminate that cost, redirecting budget toward growth, hiring, or technology.

Many SMEs are also discovering that free HR software for small businesses now offers features that were once exclusive to enterprise-tier tools.

3. Cloud Accessibility

Post-pandemic, hybrid and remote work models have become standard even in Tier-2 and Tier-3 Indian cities. Cloud-based free payroll software lets HR managers process payroll from anywhere, without being tied to an office desktop.

With cloud payroll solutions, your payroll data is accessible 24/7, backed up automatically, and never lost due to a hardware failure.

4. Integration with Attendance and Leave Management

Modern free payroll software integrates directly with attendance management systems and leave management tools, enabling automatic salary calculation based on actual working days — no manual entry required.

5. Employee Self-Service (ESS) Portals

Today’s workforce expects digital access to their pay information. Free payroll platforms typically include ESS portals where employees can view and download payslips, submit investment declarations for TDS, apply for leave, and update personal details. This reduces HR query load significantly — a major win for lean SME HR teams. Learn more about building a better employee experience through HR self-service portals.

Key Features to Look for in Free Payroll Software for India

Not all free payroll tools are created equal. Here’s what every Indian SME should prioritise:

Indian Statutory Compliance

Ensure the software handles PF (12% employee + 12% employer), ESI (0.75% employee + 3.25% employer), Professional Tax (state-wise), and TDS (as per new tax regime slabs). Read our detailed guide on payroll statutory compliance in India.

Salary Structure Flexibility

Indian payroll involves complex salary components — Basic, HRA, LTA, Medical Allowance, Special Allowance, and more. Good software lets you configure custom salary structures per employee or department.

Form 16 and 24Q Generation

Automatic generation of Form 16 for employees and Form 24Q for quarterly TDS filing is non-negotiable for compliance.

Multi-State Payroll Support

If your business operates across states, your payroll software must handle varying Professional Tax slabs. Look for tools with multi-state payroll capabilities.

Payslip Customization

Branded, professional payslips improve employee trust. Look for software that allows custom payslip templates.

Free vs. Paid Payroll Software: What’s the Real Difference?

Feature	Free Payroll Software	Paid Payroll Software
Salary Calculation	✅	✅
PF/ESI/TDS Compliance	✅	✅
Payslip Generation	✅	✅
Employee Self-Service	✅ (basic)	✅ (advanced)
API Integrations	Limited	Full
Dedicated Support	Community/Email	Priority/Phone
Custom Workflows	Limited	Full
Number of Employees	Up to 25–50	Unlimited

For most SMEs with under 50 employees, free payroll software covers 90% of their needs. Compare your options in our free vs paid payroll software guide.

Top Benefits of Switching to Free Payroll Software in 2026

Time Savings

Automated payroll processing reduces the time spent on manual salary calculations by up to 70%. What once took an HR team 3–4 days per month can now be completed in a few hours.

Accuracy and Error Reduction

Manual errors in payroll can cost businesses fines, employee disputes, and lost trust. Automated tools eliminate arithmetic mistakes and ensure consistent application of rules.

Data Security

Reputable free payroll platforms use bank-grade encryption to protect sensitive salary and personal data — far more secure than Excel sheets stored on local drives. Learn about payroll data security best practices.

Mobile Accessibility

With mobile-responsive dashboards, HR managers can approve payroll runs or check reports from their smartphones — ideal for business owners who are always on the move.

Scalability

As your business grows, your payroll software scales with you. Many free tiers allow easy upgrades when you cross employee thresholds, ensuring continuity. Explore HR software for growing businesses.

Who Should Use Free Payroll Software in India?

Free payroll software is ideal for:

Startups: Getting compliance right from day one without burning budget
Small businesses: Streamlining HR operations without a dedicated payroll team
NGOs and non-profits: Operating on tight budgets with mandatory compliance obligations
Seasonal businesses: Paying variable workforces without year-round software costs
CA firms and accountants: Managing payroll for multiple small clients from one platform

Check out our guide on choosing the right payroll software for your business size.

Common Mistakes SMEs Make with Payroll (And How Software Fixes Them)

Missing PF filing deadlines — Software sends automated reminders and generates challans automatically.
Incorrect TDS deductions — Built-in tax calculators apply the correct slab rates based on employee declarations.
Not accounting for LOP (Loss of Pay) — Attendance integration auto-adjusts salaries for absent days.
Ignoring arrear calculations — Software handles arrear payroll for revised salary cases seamlessly.
Paper payslip distribution — Digital payslip delivery via email or ESS portal replaces costly printing.

Read more about common payroll mistakes and how to avoid them.

How to Get Started with Free Payroll Software in India

Getting started is simpler than most SMEs expect:

Sign up for a free account on your chosen platform
Set up your company profile — PAN, TAN, PF registration number, ESI code
Add employees — upload via bulk CSV or add individually
Configure salary structures — define components for each designation
Integrate attendance — connect your biometric or app-based attendance system
Run your first payroll — review, approve, and distribute payslips

Most platforms allow you to go live within a single working day. See our payroll software implementation guide for a step-by-step walkthrough.

Trusted External Resources

EPFO Official Portal — For PF contribution rates, UAN management, and ECR filing guidelines (Ministry of Labour & Employment, Government of India)
Income Tax India — TDS Section — Official TDS rates, Form 24Q filing, and challan payment procedures (Government of India)
ESIC Official Website — ESI contribution rules, employer registration, and claim procedures (Employees’ State Insurance Corporation, GoI)

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Conclusion

The payroll landscape in India has changed dramatically. In 2026, free payroll software isn’t a stripped-down compromise — it’s a fully capable, compliance-ready solution built for the realities of Indian SMEs.

From automating PF and ESI deductions to generating Form 16 and sending digital payslips, the right free payroll software can save your team dozens of hours every month, eliminate costly compliance errors, and give your employees a better experience.

The question isn’t whether your SME can afford to switch to free payroll software. It’s whether you can afford not to.

Try INDPayroll’s Free Payroll Software — Built for Indian SMEs

Frequently Asked Questions

Is free payroll software really free for Indian businesses?

Yes, many platforms offer permanently free tiers for small teams (typically up to 25–50 employees) with full statutory compliance features. Some offer free trials of premium plans as well.

Does free payroll software handle PF and ESI in India?

Absolutely. Most reputable free payroll tools for India include automated PF, ESI, and Professional Tax calculations, along with ECR generation for EPFO filing.

Can I generate Form 16 using free payroll software?

Yes. Many free payroll platforms support Form 16 (Part A and Part B) generation for employees, as well as Form 24Q for quarterly TDS returns.

Is free payroll software secure for sensitive salary data?

Yes, provided you choose a reputable provider. Look for SSL encryption, role-based access control, and data backup features.

What happens when my business grows beyond the free tier limits?

Most platforms offer affordable upgrade plans with more employee slots, advanced features, and priority support — allowing seamless transitions as you scale.

How long does it take to set up free payroll software?

Most SMEs can complete the initial setup — company profile, employee data, salary structures — within one business day.

Is the internet required to run cloud-based free payroll software?

Yes, cloud-based payroll tools require an internet connection. However, some platforms also offer offline modes with sync capabilities.

Best Payroll Software for Small Businesses in India

Posted on March 31, 2026May 29, 2026 by Kallala Giri

Running payroll for a small business in India is far more complex than simply cutting monthly cheques. Between calculating PF contributions, deducting TDS correctly, filing ESI returns, and generating Form 16, the compliance burden can easily overwhelm an HR team or a founder managing everything on spreadsheets.

However, the right payroll software can eliminate errors, save hours every month, and keep your business 100% compliant with Indian labour laws — without hiring a full-time payroll specialist. As a result, thousands of Indian companies are now switching from manual processes to modern, automated solutions.

In this guide, we break down exactly what to look for in payroll software for small businesses in India and explain why INDPayroll is becoming the go-to choice for Indian SMEs, startups, and CA firms.

Why Small Businesses in India Need Payroll Software

Indian payroll operates under multiple statutory laws — specifically the Employees’ Provident Funds Act, the ESI Act, the Income Tax Act, and various state-level Professional Tax rules. Because of this complexity, missing a single deadline or making a calculation error can lead to serious consequences.

For example, a late TDS deposit can attract heavy penalties under Section 234E of the Income Tax Act. Similarly, delayed PF or ESI contributions attract interest and fines from the respective government authorities. Beyond financial penalties, compliance failures also lead to failed audits, legal notices from labour authorities, and a significant loss of employee trust due to incorrect salary disbursements.

For small businesses and startups with lean finance teams, managing this manually on Excel is not just inefficient — it is genuinely risky. One wrong formula can miscalculate salaries for your entire workforce in a single month. Fortunately, payroll software solves this by automating calculations, maintaining compliance records, and generating ready-to-file statutory reports — all from one platform.

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ESI & TDS Software

Professional compliance management for Indian businesses. 100% Free Forever.

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What to Look for in Payroll Software for Small Businesses

Before choosing a payroll tool, every small Indian business should evaluate these key criteria carefully.

First and most importantly, look for full statutory compliance coverage. The software must handle PF, ESI, TDS (Section 192), Professional Tax, Gratuity, and Bonus calculations automatically. Additionally, it should stay updated with the latest government notifications and tax slabs. You can learn more about EPF regulations in India and how they affect your payroll obligations.

Second, consider ease of use. Since small businesses rarely have a dedicated payroll team, the software should be simple enough for an HR generalist or even a founder to operate without technical training. Third, look for automated payslip generation — password-protected, professional payslips that can be emailed directly to employees. You can even try INDPayroll’s free payslip generator before committing to any paid plan.

Fourth, your chosen software must support both Old and New Tax Regimes, computing TDS under each and allowing employees to declare their preferred choice. Fifth, prioritise transparent pricing that scales — ideally starting with a free tier. Finally, ensure the platform produces ready-to-file statutory reports such as ECR files for EPFO, ESI challans, Form 24Q, and Form 16.

INDPayroll: Purpose-Built for Small Businesses in India

INDPayroll is a cloud-based payroll management platform built specifically around Indian compliance requirements. Currently trusted by more than 5,000 Indian businesses, it makes payroll effortless for SMEs, startups, CA firms, and growing enterprises of all sizes.

Automated Monthly Payroll Runs

With INDPayroll, you simply import attendance data, verify deductions, and process salaries for your entire team in a single click. Consequently, what used to take 3 full days now takes under 15 minutes — thanks to INDPayroll’s powerful salary processing engine.

Full Statutory Compliance

INDPayroll automatically calculates PF (EPF ECR files), ESI challans, TDS under both Old and New Tax Regimes, Professional Tax as per state slabs, Gratuity, and Bonus. Moreover, the compliance engine is updated monthly to reflect the latest changes in Indian labour law. Explore PF and ESI compliance automation in detail on the product page.

Professional Payslip Generation

Rather than emailing payslips manually, you can generate and bulk-send password-protected digital payslips to every employee in a single click. To see how it works, try the free payslip generator tool — no account needed.

Employee Self-Service Portal

Instead of fielding constant payslip requests, HR teams can direct employees to a dedicated self-service portal. Through this portal, employees can view payslips, download Form 12BB, submit investment declarations, and track leave requests — thereby reducing HR admin queries significantly.

Multi-Company Dashboard

For CA firms managing multiple client payrolls, INDPayroll provides a centralised master dashboard to oversee all entities in one place. As a result, consultants save hours every month that would otherwise be spent switching between different accounts or systems. See the full feature set on the payroll software product page.

Smart Reports and Analytics

In addition to compliance reports, INDPayroll provides actionable analytics on CTC leakage, tax liabilities, salary trends, and statutory filings — giving HR and finance teams the insights they need for better decisions. Visit the reports and payslips generator to explore all reporting capabilities.

INDPayroll Pricing Plans

One of INDPayroll’s biggest advantages for small businesses is its transparent, scalable pricing with absolutely no hidden fees. Here is a breakdown of all available plans.

Free Plan — ₹0 Forever: This plan is perfect for micro-teams and early-stage startups. It supports up to 5 employees and includes automated monthly payroll, digital payslips, standard PF compliance, basic leave tracking, and a full Employee Self-Service portal.

Startup Plan — ₹1,500/month + ₹10 per employee: Specifically designed for growing SMEs with up to 100 employees, this plan includes everything in the Free plan. In addition, it covers full TDS and income tax management, ESI and Professional Tax, Form 16 generation, custom pay components, arrears and bonus calculations, and priority email support.

Professional Plan — ₹2,500/month + ₹50 per employee: Tailored for larger teams of up to 1,000 employees, this tier adds advanced attendance with geo-tagging, shift scheduling, performance incentive processing, mobile app access, reimbursement workflows, and API integrations.

Enterprise Plan — Custom Pricing: For complex organisations that require biometric sync, ERP integration (SAP, Oracle), SSO/SAML, on-premise deployment, and a dedicated account manager. View all pricing details and compare plans here.

Free Payroll, PF, ESI & TDS Software

The most trusted automation tool for modern Indian businesses.

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How INDPayroll Works in 3 Simple Steps

Getting started with INDPayroll is fast and requires no technical knowledge whatsoever. The entire process works in three straightforward steps.

Step 1, you add or import your employees along with their salary components, CTC structure, and tax declarations.

Step 2, you run payroll — with a single click, INDPayroll calculates gross pay, all statutory deductions (PF, ESI, TDS, PT), and net take-home for every employee simultaneously. In

Step 3, you generate reports and payslips — downloading compliance-ready filing reports and sending payslips to all employees instantly. Setup takes less than 10 minutes, and no credit card is required to start.

INDPayroll vs. Managing Payroll on Excel

	Excel/Manual	INDPayroll
Time to process 50 salaries	2–3 days	Under 15 minutes
Risk of calculation errors	High	Near zero
PF/ESI auto-compliance	No	Yes
TDS (Old & New Regime)	Manual	Automated
Form 16 & 24Q	Manual	Auto-generated
Payslip distribution	Manual email	One-click bulk email
Annual cost (50 employees)	₹0 + risk of penalties	From ₹18,000/year

Stay Compliant with Indian Labour Laws

Staying compliant is not optional — it is a legal obligation for every Indian business. The latest labour law updates directly affect how you calculate EPF, ESI, and Professional Tax each year. Therefore, INDPayroll’s compliance engine is updated monthly to reflect all changes in Indian statutory rules, so you never have to track regulation changes manually.

Furthermore, if you are new to compliance requirements, you can use INDPayroll’s free compliance calendar to track all important PF, ESI, and TDS filing deadlines throughout the year. For quick estimates, you can also use the free TDS calculator or the free ESI calculator.

Who Is INDPayroll Best For?

INDPayroll is an excellent fit for small and medium businesses across a wide range of industries. IT startups, manufacturing units, construction firms, CA firms managing multiple clients, retail chains, and educational institutions all benefit significantly from automating their payroll. In short, any Indian business that processes monthly salaries and needs to stay compliant with PF, ESI, and TDS regulations will find INDPayroll to be the most practical and affordable solution.

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Free Payroll, PF, ESI & TDS Software

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Conclusion

For small businesses in India, payroll is not merely an administrative task — it is a critical legal obligation with real financial consequences when done incorrectly. Therefore, investing in the right payroll software protects your business, saves your team hours every month, and gives your employees confidence in every salary cycle.

Overall, INDPayroll stands out as a top choice because it is purpose-built for Indian compliance, offers a genuinely free plan to start, and scales affordably as your team grows. Whether you are a 5-person startup or a 500-person SME, INDPayroll gives you the tools to run payroll with complete confidence.

Ready to automate your payroll? Start for free — no credit card required.

Form 16 is Now Form 130: What Every Indian Employer Must Do Before April 1, 2026

Posted on March 26, 2026June 2, 2026 by Ajay Sahoo

Every Indian employer who has ever issued a Form 16 needs to read this — the certificate you have been giving employees for decades is officially replaced, and the deadline is April 1, 2026.

INDPayroll Compliance Team — CRMLeaf Software Pvt. Ltd.

Our compliance team tracks CBDT, EPFO, ESIC, and Ministry of Labour notifications daily, so you do not have to. INDPayroll is a free payroll compliance platform built for Indian SMEs and CA firms.

In This Article

What exactly changed: Form 16 → Form 130
Complete form mapping table
Why this matters for your FY 2025-26 payroll
5-step action checklist before April 1
Specific guidance for CA firms
How INDPayroll handles Form 130 automatically
FAQs

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What Exactly Changed: Form 16 → Form 130

The Government of India enacted the new Income Tax Act 2025 to replace the Income Tax Act 1961 comprehensively. As part of this overhaul, all tax certificates and forms have been renumbered and updated with enhanced disclosure requirements, effective April 1, 2026.

⚠️ Immediate Action Required

Form 16 is no longer valid from April 1, 2026. Any payroll software, template, or process that generates “Form 16” must be updated to generate Form 130 before FY 2025-26 TDS certificates are issued (due by May 31, 2026).

The transition is straightforward in concept but far-reaching in practice. The new Form 130 retains the purpose of Form 16 — certifying TDS deducted from salary — but introduces a more detailed breakdown of salary components and tax computations, aligned with the revised income tax slabs and deductions under the new Act.

3 Major form replacements under the IT Act 2025
6 Days left to update your payroll system (from March 26)
May 31 Deadline to issue Form 130 to all employees

Complete Form Mapping Table

Under the Income Tax Act 2026 rules, all existing forms have been renumbered. Here is the complete mapping of every form that Indian payroll and HR professionals use:

Purpose	Old Form (IT Act 1961)	New Form (IT Act 2025)	Effective Date
Salary TDS certificate (employer to employee)	Form 16 (Part A + B)	Form 130	April 1, 2026
TDS certificate for non-salary payments	Form 16A	Form 131	April 1, 2026
Annual tax statement (taxpayer’s consolidated view)	Form 26AS	Form 168	April 1, 2026
Quarterly TDS return for salary	Form 24Q	Form 24Q (updated format)	Q1 FY 2026-27
Employee’s income from other sources declaration	Form 12BA	Updated under the new Act	April 1, 2026

💡 Key Clarification

For FY 2025-26, TDS certificates must be issued in the new Form 130 format even though the underlying salary was paid under the old Act. The certificate format changes; the tax calculation rules for FY 2025-26 remain under transitional provisions.

Why This Matters for Your FY 2025-26 Payroll

FY 2025-26 ends on March 31, 2026. Your obligations include:

Q4 TDS return (Form 24Q): Due in updated format for the quarter ending March 31, 2026.
Annual TDS certificates: Issue Form 130 (replacing Form 16) to all employees by May 31, 2026.
Payroll software update: Any system that generates Form 16 must be updated to generate Form 130 before certificates are due.

The biggest risk is not the form number change itself — it is employers issuing “Form 16” in May 2026 using old templates that no longer comply with the Income Tax Act 2025.

— INDPayroll Compliance Team

Employees need Form 130 to file their ITR for AY 2026-27. Issuing the wrong certificate format could result in non-compliance notices from the Income Tax Department.

Free Payroll, PF, ESI & TDS Software

The most trusted automation tool for modern Indian businesses.

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5-Step Action Checklist Before April 1

Audit your payroll software. Check whether your system has been updated to produce Form 130. If it still shows “Form 16,” contact your vendor or switch to INDPayroll (handles this automatically on the free plan).
Update all Form 16 templates. If you use Excel or Word templates, replace “Form 16” with “Form 130” and update the certificate format to reflect the new breakdown requirements under the IT Act 2026.
Verify your Q4 TDS data is complete. Reconcile all salary payments for January–March 2026. Ensure TDS was correctly deducted for each employee, and Form 24Q Q4 data is accurate.
Inform your employees and the CA/tax consultant. Proactively communicate that their annual TDS certificate is now called “Form 130.” This avoids confusion when they receive it in April–May and file their ITR.
Update your compliance calendar. Change all references to “Form 16 issuance by May 31” to “Form 130 issuance by May 31” across your compliance checklists, HR policies, and employee handbooks.

✓ INDPayroll Users

If you’re using INDPayroll, your TDS certificate generation has already been updated to produce Form 130 format. No action required — your certificates will be compliant automatically.

Specific Guidance for CA Firms

CA firms managing payroll for multiple clients must update processes, software, and client communications simultaneously. Prioritized approach:

For the next 6 days (before April 1)

Triage all active payroll clients by whether their current software can generate Form 130.
Issue client alerts explaining the Form 16 → Form 130 transition under the IT Act 2025.
Verify Q4 TDS data for March 2026 is finalized for each client.

For April–May 2026

Issue Form 130 certificates to all employees of all clients by May 31, 2026.
Update all client-facing compliance checklists and annual payroll calendars.
Advise clients to update HR policies and employee communication templates.

💡 For CA Firms Using INDPayroll

INDPayroll’s free plan supports unlimited client management at no per-employee charge. Form 130 is generated automatically for all clients from a single dashboard.

How INDPayroll Handles Form 130 Automatically

INDPayroll is built from the ground up for Indian compliance. The compliance engine is updated automatically — so you always generate the correct certificate format without manual intervention.

Auto Form 130 Generation

Generate Form 130 certificates for all employees in one click. Compliant with the IT Act 2025 format, pre-filled from your payroll data.

Free TDS Calculator

Calculate employee-wise TDS liability for FY 2025-26, supporting both old and new tax regimes.

Form 24Q Filing Support

Prepare and validate Q4 Form 24Q data. All salary and TDS data flows automatically from your payroll records.

CA Multi-Client Dashboard

Manage compliance for multiple clients from one dashboard. Generate Form 130 in bulk across all clients simultaneously.

💡 Completely Free

INDPayroll’s core compliance features — Form 130 generation, TDS calculations, EPF/ESI management, Form 24Q preparation — are available on our free plan with no per-employee charges.

India’s #1 Free Software

Free Payroll, PF,
ESI & TDS Software

Professional compliance management for Indian businesses. 100% Free Forever.

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Frequently Asked Questions

Is Form 16 completely invalid from April 1, 2026, or just for new certificates?

Form 16 certificates already issued for previous financial years remain valid. However, all new TDS certificates issued from April 1, 2026, onwards — including FY 2025-26 certificates due by May 31 — must be in Form 130 format.

What if my payroll software can’t generate Form 130 by May 31?

Contact your vendor urgently, or switch to INDPayroll, which already generates Form 130. Do not issue Form 16 certificates for FY 2025-26 — this will be non-compliant.

Does the Form 16 → Form 130 change affect TDS calculation or rates?

No — the change is in the certificate format and disclosure requirements, not the TDS rates. The new Form 130 provides a more detailed breakdown of how the tax was computed, but the underlying calculation follows the transitional provisions of the new Act.

What is Form 131, and how does it affect us?

Form 131 replaces Form 16A — the TDS certificate for non-salary payments (professional fees, rent, contractor payments). Issue Form 131 instead of Form 16A for FY 2025-26 onwards.

When is the deadline to issue Form 130 to employees?

The deadline is May 31, 2026, for FY 2025-26 certificates — same as the previous Form 16 deadline. The certificate name changes; the issuance timeline does not.

Does Form 26AS also change?

Yes, Form 26AS is replaced by Form 168 under the IT Act 2025. Employees will see Form 168 on the Income Tax Portal from April 1, 2026 — a consolidated view of all TDS, TCS, and advance tax paid, with enhanced disclosures.