
PF, ESI, TDS, PT — All India Compliance
INR Pricing Verified from Screenshot
Zoho Books Integration Included
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Running payroll in India is not just about calculating salaries and transferring money — it is a monthly statutory compliance operation that involves Provident Fund contributions to EPFO, ESI deductions for eligible employees, Professional Tax collection at state-specific slabs that vary across every Indian state, TDS deduction under Section 192 with quarterly returns, and Form 16 generation at year end. Every one of these obligations has a compliance deadline, a filing requirement, and a penalty for non-compliance. A certified Zoho Payroll partner India configures all of these correctly in Zoho Payroll, integrates it with Zoho Books for automatic payroll journal entries, sets up your salary component structure, and trains your HR and accounts team — so that payroll runs on autopilot every month without manual calculations or compliance risk. Codroid Labs is a certified Zoho Payroll partner India delivering complete Zoho Payroll setup, India statutory compliance configuration, and Zoho Books integration at verified INR pricing.

12% employer
ECR challan auto
3.25% employer
For salary ≤ ₹21,000
All India states
Auto calculation
Form 16 at year end
24Q quarterly return
- Verified INR Pricing — All 4 Zoho Payroll Plans 2026
- Zoho Payroll vs Zoho People — Critical Difference
- India Statutory Compliance — PF, ESI, TDS, PT
- Salary Component Configuration in Zoho Payroll
- Zoho Books Integration — Payroll Journal Entries
- Industry-Specific Payroll Setup in India
- 7 Questions to Ask Any Zoho Payroll Partner India
- Multi-State Payroll — PT Slabs Across India
- 5-Phase Implementation Process
- 12 FAQs — Zoho Payroll Partner India 2026
1. Verified INR Pricing — All 4 Zoho Payroll Plans India 2026
The single most important thing a Zoho Payroll partner India should provide before any consultation ends is verified INR pricing. The following prices are taken directly from the official Zoho Payroll pricing page (annual billing, per organisation per month, excluding 18% GST). Verify at zoho.com/payroll/pricing.
| Plan | INR Price | Employees Included | Additional Employee | Best For |
|---|---|---|---|---|
| Free | ₹0 | Up to 10 | N/A | Startups, micro-businesses — basic payroll |
| Standard | ₹1,000/org/month | 25 included | ₹40/employee | SMBs — salary templates, loans and advances |
| Professional ⭐ | ₹3,000/org/month | 50 included | ₹60/employee | Most India businesses — bonus, off-cycle, reporting tags |
| Premium | ₹4,000/org/month | 50 included | ₹80/employee | Large businesses — leave management, advanced approvals |
What Does Payroll Actually Cost for Your Business — Real INR Examples
25 employees included. ₹40 per additional employee if headcount grows. A 30-employee company pays ₹1,000 + (5 × ₹40) = ₹1,200/month.
50 employees included + 50 extra at ₹60 each = ₹3,000 + ₹3,000 = ₹6,000/month. Bonus, off-cycle pay runs, and reporting tags included.
50 included + 200 extra at ₹60 = ₹3,000 + ₹12,000 = ₹15,000/month. At this scale, Zoho Payroll costs just ₹60/employee/month — extremely competitive.
50 included + 450 extra at ₹80 = ₹4,000 + ₹36,000 = ₹40,000/month. Includes leave and attendance management and advanced approvals.
2. Zoho Payroll vs Zoho People — The Critical Difference Every Indian Business Must Know
The most common confusion for Indian businesses evaluating Zoho HR products is the difference between Zoho Payroll and Zoho People. They are not the same product — they serve different purposes and most mid-size and large Indian businesses need both, integrated together.
| Function | Zoho Payroll | Zoho People |
|---|---|---|
| Salary calculation and payslips | Yes — core function | No |
| PF / ESI / TDS / PT statutory compliance | Yes — fully automated | No |
| Form 16, 24Q quarterly return | Yes | No |
| Leave management and approvals | Premium plan only | Yes — all plans |
| Attendance tracking | Premium plan only | Yes — all plans |
| Performance appraisals | No | Yes |
| Payroll journal to Zoho Books | Yes — native | No |
3. India Statutory Compliance in Zoho Payroll — PF, ESI, TDS, and Professional Tax
India’s payroll statutory compliance is more complex than most countries — four separate statutory deductions with different calculation rules, different filing frequencies, and different penalties for non-compliance. A certified Zoho Payroll partner India configures all four correctly from Day 1.
- Employee contribution: 12% of Basic + DA
- Employer contribution: 12% of Basic + DA
- Employer contribution split: 8.33% to EPS, 3.67% to EPF
- Applicable for businesses with 20+ employees
- Monthly ECR (Electronic Challan cum Return) generated automatically
- Employee UAN number linked in Zoho Payroll employee record
- Employee contribution: 0.75% of gross salary
- Employer contribution: 3.25% of gross salary
- Applicable only if employee gross salary ≤ ₹21,000/month
- Employees above ₹21,000 are automatically excluded
- Monthly ESI challan with employee IP number tracking
- Applicable for establishments with 10+ employees
- Monthly TDS on salary under new or old tax regime (employee’s choice)
- Old regime: standard deduction ₹50,000, HRA exemption, Section 80C
- New regime: standard deduction ₹75,000 (Budget 2024)
- Annual tax spread equally over 12 months
- Form 16 Part A and Part B generated at year end
- 24Q quarterly TDS return data exported
- State-specific — not applicable in all states
- Maharashtra: up to ₹200/month (monthly deduction)
- Karnataka: ₹200/month for salary above ₹15,000
- West Bengal: up to ₹200/month (slabs vary by salary)
- Tamil Nadu: ₹208/half year or ₹182/half year
- Zoho Payroll auto-applies correct state PT slab based on work location
4. Salary Component Configuration — The Foundation of Indian Payroll

India’s salary structure is more complex than any other country — each salary component (Basic, HRA, DA, LTA, medical allowance, special allowance) has different income tax treatment under Section 10 and different impacts on PF and ESI calculations. Getting this wrong in Zoho Payroll creates incorrect statutory deductions and incorrect TDS from Day 1.
| Salary Component | Taxable? | PF Eligible? | India Rule |
|---|---|---|---|
| Basic Salary | Yes — fully taxable | Yes — 12% of Basic | Typically 40-60% of CTC |
| HRA (House Rent Allowance) | Partially exempt | No | Sec 10(13A) — min of: HRA received, Rent paid – 10% Basic, 50%/40% Basic (metro/non-metro) |
| LTA (Leave Travel Allowance) | Partially exempt | No | Sec 10(5) — exempt up to actual travel cost, twice in 4-year block |
| Medical Allowance | Now taxable (pre-2018 was exempt) | No | Standard deduction of ₹75,000 now replaces the old ₹15,000 medical exemption |
| Special Allowance | Fully taxable | No | Balance salary component — increases CTC without increasing PF liability |
| Employer PF (CTC component) | Taxable for employee | Yes — employer 12% | Employer PF is part of CTC but deducted before in-hand salary is paid |
5. Zoho Books Integration — Automatic Payroll Journal Entries
The most powerful feature of the Zoho Payroll and Zoho Books integration for Indian businesses is automatic payroll journal entry posting — every month, after payroll is approved, Zoho Payroll creates a complete journal entry in Zoho Books covering all salary components, employer contributions, and deductions. No manual accounting entry. No risk of wrong posting to wrong ledger heads.
- Dr. Salary Expense Account — gross salary amount
- Dr. Employer PF Contribution — 12% of PF-eligible salary
- Dr. Employer ESI Contribution — 3.25% of ESI-eligible salary
- Cr. Employee PF Payable — employee 12% PF deduction
- Cr. Employee ESI Payable — employee 0.75% ESI
- Cr. TDS Payable — monthly salary TDS amount
- Cr. Professional Tax Payable — state PT deduction
- Cr. Salary Payable — net salary to be paid to employees
- Salary expense ledger — mapped to Zoho Books P&L account
- Employer PF ledger — mapped to employee benefit expense
- PF payable ledger — mapped to current liability
- ESI payable ledger — separate current liability
- TDS payable ledger — duty and tax current liability
- PT payable ledger — state-specific liability
- Salary payable ledger — bank account for salary transfer
6. Industry-Specific Zoho Payroll Setup in India
Variable pay, performance bonuses, ESOP taxation, multi-city employees with different PT slabs (Bangalore, Hyderabad, Pune, Chennai). LTA and flexible benefit components for high-salary employees. Shift-wise salary for 24×7 support teams. TDS planning across old vs new regime for different salary bands. Reporting tags for project-wise or cost-centre-wise salary allocation in Zoho Books.
Factory worker wages with daily/weekly pay cycles, overtime calculation, production bonus, shift allowances. ESIC for large blue-collar workforces (most factory workers earn below ₹21,000). Piece rate salary structure for contract workers. Multiple work locations with different PT registrations. Contractor payroll separation from employee payroll.
Doctors on retainer salary vs consulting fees (consulting fees paid via professional services invoice, not payroll). Nursing staff shift differentials. Medical reimbursements. Gratuity calculation for long-serving staff. Multi-location hospitals with different state PT. ESIC for support staff. Doctor recruitment variable compensation linked to OPD patient count.
Daily wage workers, weekly payroll cycles, project-based salary allocation for cost-to-project reporting. CLRA (Contract Labour Regulation and Abolition Act) compliance for contractor employees. Building and other construction workers welfare fund contributions in applicable states. Migrant worker salary payment via bank in states where direct payment is mandated.
7. 7 Questions to Ask Any Zoho Payroll Partner India Before You Sign
This is the most technically critical Zoho Payroll configuration step. A genuine Zoho Payroll partner India describes which components are PF-eligible (Basic, DA, special allowance if included), which are tax-exempt under Section 10 (HRA with correct metro/non-metro calculation, LTA), and how the standard deduction of ₹75,000 is applied. A partner who cannot immediately describe the difference between taxable and PF-eligible components has not configured Indian payroll before.
Professional Tax is state-specific — Maharashtra, Karnataka, West Bengal, Tamil Nadu, Andhra Pradesh, and Telangana all have different PT slabs, different payment frequencies (monthly in some states, twice-yearly in others), and different registration requirements. A Zoho Payroll partner India who has configured PT for multi-state businesses immediately knows the Maharashtra ₹200/month cap, Karnataka’s ₹200/month for salary above ₹15,000, and the states where PT is not applicable. A generic IT reseller will configure the same PT slab for all locations.
The Zoho Books payroll journal integration has seven distinct debit and credit entries for every payroll run. A Zoho Payroll partner who is also a certified Zoho Books implementor knows each ledger account — salary expense, employer PF, employer ESI, employee PF payable, employee ESI payable, TDS payable, PT payable, and salary payable — and maps them to the correct Zoho Books account during setup. A partner who says “yes it integrates with Zoho Books” without describing the ledger structure has not configured this integration for a real Indian business.
Form 16 has two parts — Part A (TDS deducted, issued by employer) and Part B (income details, deductions claimed by employee). A Zoho Payroll partner India who has processed a full financial year for at least one Indian business describes the Form 16 generation process, the data validation before issuance, and how the 24Q quarterly return data is exported for filing with the income tax department. These are year-end deliverables that most resellers who have never run Indian payroll for a full year cannot explain.
Since Budget 2020, Indian employees must choose between the old tax regime (with deductions) and the new tax regime (lower rates, no deductions) every year. Zoho Payroll allows each employee to declare their tax regime preference, and the TDS deduction is calculated accordingly. A Zoho Payroll partner who has configured this for a real Indian business explains how to capture employee regime declarations, how Zoho Payroll runs comparative calculations showing employees which regime saves more tax, and how the regime can be updated during the financial year.
ESI applies only to employees with gross salary at or below ₹21,000 per month. When an employee receives a salary increment that takes them above ₹21,000 mid-year, their ESI obligation continues until the end of that ESI contribution period (April-September or October-March). A Zoho Payroll partner India who has managed ESI for a growing company explains the contribution period rule, what happens at the salary threshold crossing, and how Zoho Payroll handles this automatically versus requiring manual override.
Indian businesses need their Zoho Payroll partner to be available during the first payroll run of every month — the most error-prone period — and during year-end Form 16 preparation. A genuine Zoho Payroll partner India provides: a written fixed-price INR implementation proposal covering salary component setup, statutory configuration, Zoho Books integration, and team training; and a clear monthly support retainer covering payroll run support, compliance deadline reminders, and year-end Form 16 assistance.
8. Multi-State Payroll — Professional Tax Slabs Across India
For Indian businesses with employees across multiple states, Zoho Payroll’s multi-location capability is essential. Here are the Professional Tax configurations for the major Indian states where PT is applicable, which a certified Zoho Payroll partner India configures per work location.
| State | PT Rate | Frequency | Note |
|---|---|---|---|
| Maharashtra | ₹200/month (max ₹2,500/year) | Monthly | February capped at ₹300 to reach ₹2,500 annual |
| Karnataka | ₹200/month for salary above ₹15,000 | Monthly | Nil for salary below ₹15,000/month |
| West Bengal | ₹110-208/month based on salary slab | Monthly | Multiple salary slabs — max ₹208/month |
| Andhra Pradesh | Up to ₹250/month | Monthly | Salary-based slabs — check current AP PT schedule |
| Telangana | Up to ₹200/month | Monthly | Same structure as AP after bifurcation |
| Tamil Nadu | ₹182 or ₹208 per half year | Half-yearly | April-September and October-March cycles |
| Delhi, UP, Haryana, Punjab, Rajasthan | Not Applicable | N/A | No PT in these states — Zoho Payroll automatically excludes |
9. 5-Phase Zoho Payroll Implementation Process for Indian Businesses
Session covering your current payroll system (Excel, legacy software), employee count and growth plan (to choose correct plan), salary grade structure, states of operation (for PT), PF and ESI registration numbers, TDS filing frequency, and Zoho Books chart of accounts for ledger mapping. Output: fixed-price proposal with exact licence cost and implementation cost in INR.
Salary component setup with correct PF eligibility and tax treatment. PF, ESI, TDS, and PT configuration per state. Pay schedule setup (monthly, weekly, or semi-monthly). Salary templates by grade and designation. Bank payment file format for your bank (SBI SFMS, HDFC NetBanking, ICICI NEFT). Zoho Books ledger account mapping for all payroll journal entries.
Employee master import — name, PAN, UAN (PF), IP number (ESI), bank account details, salary grade, work location, and year-to-date payroll data for mid-year go-live. YTD payroll history is critical — without it, TDS calculation for the rest of the year will be incorrect because it won’t account for salary already paid before Zoho Payroll go-live date.
Run Zoho Payroll in parallel with your existing payroll system for one month. Compare every output — gross salary, each deduction, net salary, PF challan amounts, ESI challan, TDS amounts — line by line. Differences indicate configuration errors that must be resolved before go-live. This step is non-negotiable — no production payroll run without parallel verification confirmation.
First live payroll run with same-day support. Training for HR team on monthly payroll run, PF challan download, ESI challan, and employee self-service portal. Training for accounts team on Zoho Books journal verification and statutory payment tracking. Monthly payroll support retainer available — essential for the first 3 payroll cycles and during year-end Form 16 preparation (January-March every year).

Run Payroll Right — PF, ESI, TDS, PT Compliant from Day 1
Codroid Labs is a certified Zoho Payroll partner India. We deliver complete payroll setup — salary component structure, PF and ESI and TDS and Professional Tax configuration, Zoho Books integration, parallel run verification, and team training — at a fixed INR price.
IT, Manufacturing, Healthcare, Construction. All Indian states and cities. Hindi and English support. Free 60-minute consultation.
10. Zoho Payroll Partner India — 12 Questions Answered
What are the Zoho Payroll pricing plans in India for 2026?
Zoho Payroll India pricing for 2026 (annual billing, per organisation per month, excluding 18% GST): Free — ₹0 (up to 10 employees). Standard — ₹1,000/org/month with 25 employees included (₹40 per additional employee). Professional — ₹3,000/org/month with 50 employees included (₹60 per additional employee). Premium — ₹4,000/org/month with 50 employees included (₹80 per additional employee). Most Indian SMBs with 25-200 employees choose Professional for its bonus pay run and reporting tag features.
What does a Zoho Payroll partner India do?
A certified Zoho Payroll partner India provides: authorised Zoho Payroll licence sales at official India pricing, complete payroll implementation — salary component configuration (Basic, HRA, DA, LTA, Special Allowance) with correct PF eligibility and tax treatment, PF and ESI and TDS Section 192 and Professional Tax setup, Zoho Books integration with ledger mapping, employee master import including YTD data, parallel run verification, and team training. Codroid Labs delivers all of this as one fixed-price engagement.
Does Zoho Payroll handle PF, ESI, TDS, and Professional Tax automatically?
Yes. Zoho Payroll automates all four India statutory deductions: PF (12% employee + 12% employer, ECR challan generation), ESI (0.75% employee + 3.25% employer for salary below ₹21,000/month), TDS Section 192 (monthly deduction based on annual tax liability under old or new regime), and Professional Tax (state-specific slabs automatically applied per work location). A certified Zoho Payroll partner India configures all four correctly from Day 1 with state-specific PT slabs.
What is the difference between Zoho Payroll and Zoho People?
Zoho Payroll processes financial payroll — salary calculation, PF, ESI, TDS, PT, payslips, Form 16, and payroll journal to Zoho Books. Zoho People manages HR — attendance, leave, performance appraisals, and employee onboarding. Most growing Indian companies need both, integrated together: Zoho People for HR data and attendance feeding into Zoho Payroll for salary calculation. A certified Zoho Payroll partner India implements both and configures the integration between them.
How does Zoho Payroll integrate with Zoho Books for payroll accounting?
Zoho Payroll’s Zoho Books integration automatically posts a complete payroll journal entry after every monthly payroll run — debiting salary expense and employer statutory contributions, crediting all employee deductions (PF payable, ESI payable, TDS payable, PT payable) and net salary payable. This eliminates manual accounting entry for payroll — the most error-prone monthly task for India’s HR-accounts teams. A certified Zoho Payroll partner India who is also a Zoho Books implementor maps all ledger accounts correctly.
Official Resources — Zoho Payroll India
- Zoho Payroll India Pricing — All Plans (Free to Premium)
- Zoho Payroll Features — Complete India Payroll Feature Guide
- Zoho Books India GST — Payroll Journal Integration
- Zoho Partner Directory — Verify Certified Partners India
- EPFO Official — PF ECR Challan Filing Portal
- Book Free Consultation — Codroid Labs Zoho Payroll Partner India
