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Payroll processing

True HR runs your complete monthly payroll: employee master data, attendance and loss-of-pay inputs, earnings, deductions, arrears and full and final settlements, with TDS (Tax Deducted at Source) computed under section 392 (earlier 192). Salaries are credited on the 1st, and salary registers, bank advice and digital payslips are delivered every cycle.

Salaries credited on the 1st. PF, ESI and TDS filed before due dates.

Book a scoping callSee slab-wise pricing

Scope

What does end-to-end payroll processing include?

Six workstreams make up a clean run. Miss any one and payday turns into a correction cycle. We own all six.

Employee master data

One clean master per employee: CTC structure, bank details, PF (Provident Fund) and ESI (Employees State Insurance) numbers, tax regime election and investment declarations, kept current every month.

Attendance and loss of pay

Attendance, leave and loss-of-pay inputs reconciled against your records before a single rupee is computed. Disputes surface before payday, not after.

Earnings

Basic, HRA (House Rent Allowance), allowances, variable pay, incentives and reimbursements, computed on the structure agreed for each employee.

Deductions

Employee PF, ESI where applicable, PT (Professional Tax) by state, LWF (Labour Welfare Fund), TDS and any authorised recoveries, each traceable to its rule.

Arrears and revisions

Increments, promotions and backdated changes computed as arrears with tax handled correctly, not as untraceable manual additions.

Full and final settlements

F&F (full and final) for every exit: notice recovery, leave encashment, gratuity where eligible, pending reimbursements and final TDS, closed in the same cycle.

Deliverables

What lands every cycle

You sendFive inputs, by Day 25

  1. Attendance, leave and loss-of-pay data

  2. New joiners and exits

  3. Variable pay and incentive amounts

  4. Salary revisions

  5. Authorised recoveries

We runSix workstreams, one run

One payroll run

  1. Employee master data
  2. Attendance and loss of pay
  3. Earnings
  4. Deductions
  5. Arrears and revisions
  6. Full and final settlements
  • Computed and validated
  • Two-step sign-off

You receiveThree outputs, every cycle

  1. Salary registers

    The statutory wage and salary registers, current every month and formatted for inspection, not reconstruction.

  2. Bank advice

    A validated bank advice file for your approver to release, so every credit matches the signed-off register to the rupee.

  3. Digital payslips

    Payslips released to every employee on payday, each line traceable: earnings, deductions and the net that hits the account.

You send five inputs by Day 25. True HR computes and validates one run across the six workstreams, your team signs it off in two steps, and three outputs come back every cycle: salary registers, bank advice and digital payslips.

The rhythm

Your month, on rails

Payroll is a calendar, not a scramble. The same six dates hold every month, from input freeze to the MIS pack.

  1. Day 20 to 25Inputs freeze
  2. Day 26 to 28Process and validate
  3. Day 1Salaries credited
  4. By Day 7TDS deposited
  5. By Day 15PF and ESI filed
  6. By Day 20Management reports
The payroll and compliance calendar True HR runs every month. Inputs freeze and the run is validated before the month closes, salaries are credited on the 1st, then TDS, PF and ESI and the management reports follow by their fixed dates.

What happens on each date

  1. Day 20 to 25Inputs freeze: attendance, loss of pay, joiners, exits, revisions
  2. Day 26 to 28Full run computed and validated, two-step sign-off with your team
  3. Day 1Salaries credited, digital payslips released
  4. Day 7Salary TDS deposited under section 392
  5. Day 15PF ECR and ESI filed, state dues on their timelines
  6. Day 20MIS pack delivered to management

The home page walks through the full month, on rails, including what happens on the compliance side of each date.

The tax engine

How is salary TDS under section 392 handled?

Each employee's annual taxable income is projected from their salary structure, declarations and chosen regime, and one twelfth of the resulting tax is deducted every month. Mid-year increments, arrears and joins are re-projected the month they occur, so March never brings a deduction shock.

  • Regime-wise computation, with the new regime standard deduction of ₹75,000 applied automatically.
  • Monthly deposit by the 7th, Form 138 (earlier 24Q) every quarter, Form 130 (earlier Form 16) for every employee at year end.
  • Employee PF at 12% of wages, up to the wage ceiling, and ESI at 0.75% where wages are up to ₹21,000 per month, deducted alongside and reconciled to the same register.

Where a ₹12,00,000 CTC goes in a year

Worked example: Karnataka, new tax regime, basic pay at 40% of CTC.

In hand for the year

₹10,98,176

91.5% of CTC

Not in hand

₹1,01,824

8.5% of CTC

The lower bar is the ₹1,01,824 that is not in hand, drawn at full width and split into its parts. Its colours match the keys in the working.

In hand each month, on average

₹91,515

Annual CTC (Cost to Company)
₹12,00,000

Stays inside the CTC

Employer Provident Fund (PF)
-₹36,000
Gratuity provision
-₹27,324
Gross salary
₹11,36,676

Deducted from gross salary

Employee PF
-₹36,000
Professional Tax, Karnataka
-₹2,500
Salary TDS under section 392
₹0
Nil in this example: taxable income of ₹10,61,676, after the ₹75,000 standard deduction, is within the ₹12,00,000 limit for the rebate under section 156 (earlier 87A).
In hand for the year
₹10,98,176
Of a ₹12,00,000 CTC, ₹10,98,176reaches the employee's bank account in the year, which is ₹91,515 a month on average. The other ₹1,01,824is the employer's contributions held inside the CTC and the deductions from gross salary. Computed with the same engine as the CTC to take-home calculator.
Rates updated for FY 2026-27

Want to see the working for your own salary? Try the income tax calculator or the CTC to take-home calculator: they run on the same engine as our payroll.

Control

Two-step sign-off, one variance report

No run is released on trust. Before payday, two approvals stand between the computation and the bank.

  1. Day 26 to 28

    Full run computed and validated

  2. Step 1: HR review

    Your HR receives the draft register with a variance report: every movement against last month, joiner by joiner, arrear by arrear, explained in plain lines. Anything unexplained stops the run.

  3. Step 2: Finance approval

    Your finance approver clears the final register and the bank advice. Only then does the file execute, so the amount credited always equals the amount approved.

  4. Day 1

    Salaries credited, digital payslips released

Nothing is released until both approvals are done, so the amount credited always equals the amount approved.

Visibility

What lands in the Day 20 MIS pack?

MIS (Management Information System) is the monthly proof that everything ran and everything filed. It reaches management by Day 20, every month.

The MIS pack

By Day 20

  • Payroll summary: headcount, gross, deductions and net pay, by department or cost centre.

  • Variance analysis: every movement against last month, explained line by line.

  • Compliance tracker: each filing with challan number, amount and deposit date.

  • Headcount movement: joiners, exits and transfers for the month.

  • F&F status for every exit, with settlement amounts and dates.

  • Register extracts and payslip archive links for your records.

One retainer, payroll and filings together

Payroll Core covers the run, registers, payslips, bank advice and every filing attached to it, at a fixed monthly retainer from ₹25,000 per month for up to 50 employees, with no per-employee charges. The full slab matrix is on the pricing page.

Frequently asked questions

What does payroll outsourcing cost in India?

True HR charges a fixed monthly retainer by headcount slab, with no per-employee charges. Payroll Core starts at ₹25,000 per month for up to 50 employees, ₹35,000 for 51-100 and ₹50,000 for 101-200, exclusive of GST. The full matrix is on the pricing page.

How is TDS on salary computed under section 392?

We project each employee's annual taxable income from their salary structure, declarations and chosen regime, apply the slab rates, and deduct one twelfth every month. Mid-year joins, increments and arrears are re-projected the month they land. Deposits go in by the 7th, Form 138 (earlier 24Q) is filed quarterly and Form 130 (earlier Form 16) is issued at year end.

When are salaries credited?

On the 1st. Inputs freeze by Day 25, the run is computed and validated by Day 28, your team signs off, and the bank advice executes so salaries credit on the 1st. That rhythm holds every month, including F&F for exits.

What inputs do you need from us each month?

Attendance, leave and loss-of-pay data, new joiners and exits, variable pay and incentive amounts, salary revisions and any authorised recoveries, all by Day 25. Everything else, computation, filings, registers, payslips and MIS, is on us.

What is the two-step sign-off?

Step one: your HR reviews the draft register with a variance report that explains every change against last month. Step two: your finance approver clears the final register and bank advice. Nothing is released until both steps are done, so payday never carries a surprise.

Ready for a payday that runs itself?

Book a 30-minute scoping call. We will map your headcount, states and current setup, run a parallel payroll to the paisa, and take the next cycle live on the 1st.

Book a 30-minute scoping callWhatsApp us now

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