TDS in Tally Prime. Streaming tax Dudction at source

slide 1;TDS DEDUCTION IN TALLY PRIME
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INTRODUCTION OF TDS
TDS full form stands for Tax Deducted at Source.

It is the tax amount deducted by the employer from the taxpayer which is deposited to the IT Department on behalf of the taxpayer.

It is a certain percentage of one's monthly income which is taxed from the point of payment.

Rates vary based on vendor type, payment amount etc as specified under IT Act
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WHY MANAGE TDS?
Legal compliance
Avoid penalties and interest
Adjust TDS against final tax liability
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TDS Setup in Tally
Enable TDS Feature Go to F11 > Features > Statutory Features > Set/Alter Features and set "Enable TDS" to Yes
Slide 5
Key things
Correctly set up tax codes
Link TDS ledger while invoicing
Capture deductee details

1. TDS DEDUCTION IN TALLY PRIME Streamlining Tax Deduction at Source

2. INTRODUCTION OF TDS TDS full form stands for Tax Deducted at Source. It is the tax amount deducted by the employer from the taxpayer which is deposited to the IT Department on behalf of the taxpayer. It is a certain percentage of one's monthly income which is taxed from the point of payment. Rates vary based on vendor type, payment amount etc as specified under IT Act

3. WHY MANAGE TDS? Legal compliance Avoid penalties and interest Adjust TDS against final tax liability

4. Enable TDS Feature Set TDS Deatils TDS Setup in Tally Enable TDS Feature Go to F11 > Features > Statutory Features > Set/Alter Features and set "Enable TDS" to Yes

5. Create TDS Vouchers Create TDS Tax Code Go to Gateway of Tally > Accounts Info > Ledgers > Create. Select TDS/TCS Tax Code as type of ledger. Enter details like Section Code, Tax Name, Effective Rate etc.

6. TDS Deductee Ledger Go to Gateway of Tally > Accounts Info > Ledgers > Create. Select Sundry Debtors/Sundry Creditors as type and enter party details.

7. Record TDS Voucher Go to Gateway of Tally > Accounting Vouchers > F7 Journal Voucher Select party ledger, enter amount. TDS will be calculated and deducted automatically when you select TDS Tax Code ledger.

8. Example Here is an example of TDS in Tally Prime with voucher entries: Made a payment of Rs 50,000 to Mr. Ramesh for certain contract services. TDS to be deducted at 10% Enable TDS Feature Go to F11 > Features > Statutory Features > Set/Alter Features and set "Enable TDS" to Yes

9. Create TDS Deductee Ledger Go to Gateway of Tally > Accounts Info > Ledgers > Create. Select Sundry Debtors/Sundry Creditors as type and enter party details.

10. Create Contract Fee Ledger Go to Gateway of Tally > Accounts Info > Ledgers > Create. Select Indirect Expenses

11. Create TDS on Fee Ledger Go to Gateway of Tally > Accounts Info > Ledgers > Create. Select Duties and Taxes

12. Pass the Voucher Entry in Journal voucher: In TallyPrime , the TDS will be calculated and posted to the TDS ledger automatically on applying the 194C Contractors TDS tax code rate.

13. Key things: Correctly set up tax codes Link TDS ledger while invoicing Capture deductee details