Free Salary Slip & Form 16 Generator: The Complete How-To Guide for 2025–26
Whether you run a small business, manage payroll for a CA firm, or are an HR executive at a growing startup — generating professional salary slips and Form 16 manually is painful, error-prone, and time-consuming. This guide walks you through how to do it in under 3 minutes, for free, without uploading any data.
📋 In This Guide
- What is a Salary Slip (Payslip)?
- What is Form 16? Part A vs Part B Explained
- Why Use a Free Browser-Based Tool?
- Step-by-Step: How to Generate a Salary Slip
- Step-by-Step: How to Generate Form 16 (Part B)
- Bulk Generation via Excel Upload
- Old vs New Tax Regime: FY 2025-26 Slabs
- Salary Components: Taxability Explained
- Legal Requirements for Salary Slips in India
- Frequently Asked Questions
1. What is a Salary Slip (Payslip)?
A salary slip — also called a payslip or salary certificate — is an official monthly document issued by an employer to every salaried employee. It itemises how the gross salary is computed, what deductions are applied, and what the employee actually receives in hand.
A legally compliant salary slip in India must include:
- Employee name, designation, department, and employee ID
- Employer / company name and address
- Month and year of the payslip
- Earnings: Basic, HRA, Special Allowance, Conveyance, LTA, Bonus, etc.
- Deductions: EPF, ESI, Professional Tax, TDS (Income Tax), Advances
- Gross salary, Total deductions, and Net take-home pay
- Amount in words (required by many banks)
2. What is Form 16? Part A vs Part B Explained
Form 16 is a TDS Certificate issued by an employer to its employees under Section 203 of the Income Tax Act, 1961. It is mandatory for every employer who has deducted TDS from an employee’s salary during the financial year.
| Feature | Part A | Part B |
|---|---|---|
| Content | Quarter-wise TDS deducted & deposited by employer | Detailed salary breakup & computation of taxable income |
| Source | Downloaded from TRACES portal by employer | Prepared by employer (our tool generates this) |
| Employee Use | Cross-verify TDS in Form 26AS / AIS | Accurately fill ITR Schedule S (Salary) |
| Due Date | 15th June after financial year end | 15th June after financial year end |
| Penalty | ₹100 per day under Section 272A(2)(g) | |
3. Why Use a Free Browser-Based Tool Instead of Paid Payroll Software?
Most payroll software in India charges ₹2,000 to ₹15,000 per year. For businesses with 2–50 employees, that cost is hard to justify when a free, equally professional alternative exists.
| Feature | Audit Apply (Free) | Typical Paid Software |
|---|---|---|
| Cost | ✅ Free forever | ❌ ₹2,000–₹15,000/year |
| Data Privacy | ✅ 100% local – never uploaded | ⚠ Stored on vendor servers |
| Login Required | ✅ No | ❌ Always |
| Old & New Regime | ✅ Both supported | ✅ Usually |
| Bulk Excel Upload | ✅ Supported | ✅ Usually |
| PDF Download | ✅ Instant | ✅ Usually |
| Form 16 Part B | ✅ Included free | ✅ Usually (paid) |
| Setup Time | ✅ Instant – open browser and go | ❌ Account setup, onboarding |
4. Step-by-Step: How to Generate a Salary Slip in 3 Minutes
Open the Tool
Go to auditapply.com and click Salary Slip & Form 16 from the left sidebar or use the search bar (type "salary"). No sign-up, no download required.
Enter Company Details
Fill in Company Name, Address, PAN, TAN. Upload your company logo (optional) — it appears on every payslip PDF making it look professional and branded.
Enter Employee Details
Fill in Employee Name, Designation, Department, Employee ID, PAN, Date of Joining, Bank Account & IFSC, UAN (EPF), and ESI number. These appear on the payslip and Form 16.
Configure Salary Components
The tool has pre-configured standard components. Customise earnings (Basic, HRA, Special Allowance, LTA, Bonus) and deductions (EPF, ESI, Professional Tax, TDS) to match your company’s salary structure.
Enter Month-wise Data
The tool supports all 12 months (April to March). Click any month tab and enter salary figures. Values carry forward automatically — just change what is different each month.
Preview & Download PDF
Click Preview to see the formatted payslip. Click Download PDF to save a pixel-perfect, print-ready PDF directly to your device.
5. Step-by-Step: How to Generate Form 16 Part B
After entering all monthly salary data, the tool automatically computes annual taxable income and generates a complete Form 16 Part B:
- Gross Salary — Sum of all 12 months’ earnings
- Section 10 Exemptions — HRA (min of 3 formulas), LTA, Conveyance etc.
- Net Salary after Section 10
- Standard Deduction — ₹75,000 (New Regime) / ₹50,000 (Old Regime)
- Chapter VI-A Deductions (Old Regime only) — 80C, 80D, 80TTA, 80G, 80CCD(1B)
- Net Taxable Income
- Slab-rate Tax Computation + Surcharge + 4% Health & Education Cess
- Section 87A Rebate — ₹25,000 if income ≤ ₹12 lakh (New Regime)
- Total Tax Payable and employer verification section
6. Bulk Generation via Excel Upload — For HR Teams & CA Firms
Managing payroll for 10, 50, or 100+ employees? The bulk Excel upload feature makes it effortless:
- Click “Download Excel Template” inside the Salary Slip tool.
- The template opens in Microsoft Excel or Google Sheets with predefined column headers for all salary components.
- Fill in one row per employee with their monthly salary data.
- Save and upload the file back to the tool.
- The tool processes all rows and populates individual employee profiles automatically.
- Navigate between employees and download individual salary slip or Form 16 PDFs for each.
- CA firms managing payroll for multiple clients
- HR departments at SMEs (10–200 employees)
- Startups setting up payroll for the first time
- CAs filing annual Form 16s at year-end in bulk
- Payroll consultants and outsourcing firms
7. Old vs New Tax Regime — FY 2025-26 Slabs & Comparison
From FY 2023-24, the new tax regime is the default. Employees must explicitly opt for the old regime. The tool shows both side-by-side:
New Tax Regime Slabs — FY 2025-26 (AY 2026-27)
| Taxable Income | Tax Rate |
|---|---|
| Up to ₹4,00,000 | NIL |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard Deduction: ₹75,000 (New Regime) | ₹50,000 (Old Regime)
Section 87A Rebate: ₹25,000 for income up to ₹12 lakh (New Regime only)
| Income Level | Old Regime | New Regime | Better |
|---|---|---|---|
| Up to ₹7 lakh | Varies with deductions | ₹0 (full rebate) | ✅ New |
| ₹7–12 lakh (heavy 80C+HRA) | Can be lower | Lower slab but no deductions | ⚠ Calculate both |
| ₹10–15 lakh (no deductions) | Higher | Lower slabs | ✅ New |
| Above ₹15 lakh (with NPS+80C) | Can be competitive | Usually lower | ⚠ Calculate both |
8. Salary Components: Taxability Explained
| Component | Taxability | Key Rule |
|---|---|---|
| Basic Salary | Fully Taxable | Base for EPF (12%), HRA exemption, gratuity calculation |
| HRA | Partially Exempt (Sec 10(13A)) | Min of: actual HRA, 40%/50% of basic, rent paid − 10% of basic |
| LTA | Exempt for 2 trips in 4-year block | Old Regime only; blocked under New Regime |
| Special Allowance | Fully Taxable | No exemption available — common top-up component |
| Conveyance Allowance | Covered by Standard Deduction | Standard deduction replaces individual transport & medical |
| EPF (Employee share) | Deductible under 80C | 12% of Basic+DA; reduces taxable income (old regime) |
| Gratuity | Exempt up to ₹20 lakh (Sec 10(10)) | Payable after 5 years; shown separately on Form 16 |
| Food Coupons / Meal Cards | Exempt up to ₹50/meal | ~₹26,400/year tax-free (old regime) |
| NPS (Employer contribution) | Exempt up to 10% of salary (Sec 80CCD(2)) | Available in both regimes — significant tax saver |
9. Legal Requirements for Salary Slips in India
While no single central law mandates one uniform format, multiple statutes require wage records and pay statements:
- Payment of Wages Act, 1936 — Requires wage registers and slips for employees earning up to ₹24,000/month (or as notified by state governments).
- Minimum Wages Act, 1948 — Mandates documentation ensuring minimum wage compliance.
- EPF & Miscellaneous Provisions Act, 1952 — EPF contribution must be clearly shown.
- ESI Act, 1948 — ESI deductions must be documented.
- Income Tax Act, 1961 (Section 192 & 203) — TDS on salary must be documented; Form 16 must be issued by 15th June every year.
- Code on Wages, 2019 — Will unify wage payment and record-keeping across India (being implemented by states).
10. Frequently Asked Questions
What is a salary slip and why is it important?
A salary slip (payslip) is an official monthly document showing gross salary, deductions (PF, ESI, TDS, professional tax), and net take-home pay. Banks require the last 3–6 months of salary slips for loan approvals. It is also required for visa applications, ITR filing, and new employer background checks.
Is the Audit Apply salary slip generator really free?
Yes. Completely free — no subscription, no hidden charges, no login. It runs entirely in your browser and your data never leaves your device. This is made possible because all the computation happens client-side using JavaScript.
Can I generate Form 16 for multiple employees at once?
Yes. Use the bulk Excel upload feature. Download the template, fill in each employee’s data row by row, upload back, and individual salary slips and Form 16 PDFs can be downloaded for each employee in one go. Ideal for CA firms handling 10–200 employee payrolls.
What is the difference between old and new tax regime for Form 16?
Old regime allows deductions under Chapter VI-A (80C, 80D, HRA, LTA etc.) and has higher slab rates. New regime (default from FY 2023-24) has lower slab rates but no such deductions. Our tool computes both regimes side-by-side so employees can choose the better option before submitting their declaration to HR.
Does the tool calculate HRA exemption automatically?
Yes. The tool automatically calculates the HRA exemption using all three parameters: (1) actual HRA received, (2) 40% or 50% of basic (depending on metro/non-metro city), and (3) rent paid minus 10% of basic — and picks the minimum as the exempt amount per Section 10(13A).
Can I add a company logo to the salary slip PDF?
Yes. Upload your company logo (PNG, JPG) in the Company Information section. It appears on the printed salary slip PDF, making it look professional and branded — ready to hand to employees or send as an email attachment.
Is the salary slip valid for banks and loan applications?
The generated PDF meets the standard format banks and NBFCs require. For a loan application, you may also need the employer’s stamp and HR signature on the printout. The format is accepted by HDFC, ICICI, SBI, Axis, and most other major lenders.
What financial year does the tool support?
The tool is updated for FY 2025-26 (AY 2026-27) with the correct new regime slabs from Budget 2025 (NIL up to ₹4L, 5% from ₹4–8L, etc.) and Section 87A rebate of ₹25,000 for income up to ₹12 lakh. Old regime computations also use the latest FY 2025-26 slab rates.
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