TankhaPay lays out 8-step payroll checklist for FY 2026-27

TankhaPay has published a payroll compliance guide for Indian employers as the Income Tax Act 2025 and four Labour Codes reshape filing, deduction and payment rules from April 2026. The company says the new framework raises the stakes for employers that need to update payroll systems, deadlines and statutory calculations.

Why it matters: - Payroll compliance for Indian employers is entering a tighter ruleset in FY 2026-27, with higher risk of filing errors, missed deductions and wage violations. - The shift affects monthly payroll operations, not just annual tax work, because new legal references, contribution rules and deadline checks now apply across each cycle. - Employers that do not update payroll processes face compounding liabilities, employee grievances and statutory penalties.

What happened: - TankhaPay, a payroll and HR compliance platform operated by Akal Information Systems Ltd, published a guide on the eight payroll process steps Indian employers must follow in FY 2026-27. - The release landed on June 11, 2026, as the Income Tax Act 2025 was already in force from April 1, 2026 and all four national Labour Codes were active after November 2025. - TankhaPay said it is trusted by more than 1,000 client organisations across India.

The details: - Payroll begins with collecting and verifying employee data, including active headcount, joining and exit dates, bank account details, investment declarations under the Income Tax Act 2025 and mid-month salary revisions. - Attendance and leave records must be accurate, including overtime, paid leave and holidays, because payroll inputs should come from verified records rather than manual estimates. - TankhaPay says its attendance system uses geofencing, facial recognition and GPS tracking, with data flowing directly into payroll. - Gross pay includes basic salary, allowances, bonuses and other income components. - Under the Code on Wages 2019, basic salary inclusive of Dearness Allowance must be at least 50% of total CTC. - Statutory deductions include PF, ESI, TDS and Professional Tax. - PF requires a 12% employee deduction and a 12% employer contribution under the EPF Act 1952. - ESI requires a 0.75% employee contribution and a 3.25% employer contribution for employees earning ₹21,000 a month or less. - TDS is calculated under Section 192 of the Income Tax Act and now falls under the Income Tax Act 2025 for all salary payments from April 2026 onward. - Old section references on filings will trigger validation errors. - Professional Tax remains state-specific and slab-based, with rules varying by state. - Net pay equals gross pay minus statutory deductions, voluntary deductions such as loans or advances, and any applicable Labour Welfare Fund contributions. - Net pay must also be checked against the applicable state minimum wage. - Salary must be paid by the 7th of the following month for organisations with fewer than 1,000 employees and by the 10th for larger organisations. - Payroll filings and deposits carry fixed deadlines: PF deposits and ECR filing by the 15th of the following month, ESI contributions by the 15th, and TDS deposit by the 7th. - Form 24Q is the quarterly TDS return under the Income Tax Act 2025, and payroll systems must reflect updated form names and section references before filing. - Professional Tax payments follow monthly or annual state schedules. - Employers must maintain digitised payroll records covering wages, attendance, statutory deductions and compliance registers. - Payslips must be issued within 24 hours of salary disbursement. - Form 16 must be issued annually, with the deadline for FY 2025-26 set for June 15, 2026.

Between the lines: - The guide reflects a compliance environment where payroll software, filing templates and internal checklists need to change together. - The biggest operational risk is not a single mistake but repeated small errors that accumulate each month across salary, tax and labour-law workflows. - TankhaPay is positioning automated attendance, payroll and compliance tools as a way to reduce manual work in a rules-heavy cycle.

What’s next: - Employers will need to align payroll systems with the Income Tax Act 2025 form structure, Labour Code contribution rules and monthly filing calendars before each pay run. - Companies that still rely on older section references or legacy payroll structures may need immediate process updates to avoid validation failures and late filings. - The June 15, 2026 Form 16 deadline for FY 2025-26 remains an immediate compliance date for employers.

The bottom line: - In FY 2026-27, Indian payroll is no longer just about paying employees on time. - It is a recurring compliance process that now demands updated law references, precise deductions and tighter recordkeeping every month.