TDS in Tally Prime

 TDS (Tax Deducted At Source)

TDS means tax deducted at source. As per the Income Tax Act, any

company or individual making a payment is required to deduct tax at

source if the payment exceeds certain limits. TDS is deducted at the

rates prescribed by the tax department.

If a Person (Deductor) is Liable to make payment to any

other person (Deductee) will deduct tax at source and transfer the

balance to the Deductee.  

 

Creating TDS Nature of Payment

For payments attracting TDS, the relevant nature of payment is defined by the

department with associated tax rate, section, payment code, and threshold limit. Few

Examples are given below …

Section	Nature of Payment	TDS Rate
192	Salaries	Average Rate Applicable
194I	Rent on Plant and Machinery	2%
194I	Rent on Land, Building, Houses, Offices etc.	10% by Company in excess of Rs.2,40,000 5% by Individual . HUF, Businessman in excess of Rs.50,000
194C	Payment to Contractor / Sub-contractor	1%
194D	Insurance Commission	5%
194DA	Payment in respect of life insurance policy	1%
194EE	Payment in respect of Deposit under NSS	10%
194H	Commission or Brokerage	5%
194J	Sum paid by way of Fees for Professional Services	10%

CREATE A COMPANY

	👇

F11 Feature

Enable Goods & Services Tax (GST) - YES

Enable Tax Deducted At Source (TDS) - YES

 

Company TDS Deducted Details

TAN Registration No. – BLRT12345A

Tax Deduction and collection Account Number(TAN)- AAAPA1234A

Detector Type– Company

Detector Branch /Division-   Delhi

Set/alter Detail of person responsible -  No

 

Rate and Exemption Detail

Ignore IT Exemption Limit for TDS Deduction – No

Activate TDS for stock Item- No

 

Exercise 1 

Create Ledger

 

1) Pranav And Company – Sundry Creditor

Maintain Balance Bill By Bill – Yes

Statutory Information

Is TDS  Deductable – Yes

Deductee Type – Individual / HUF Resident

Deduct TDS in Same Voucher – Yes

Tax Registration Details

PAN/IT No-  BODPM4264E

2) Professional Services – Indirect Expense

Statutory Information

In GST Applicable – Applicable

Set / Alter GST Alter Detail – Yes (18%)

Nature of Transaction- Purchase Taxable

Type of Supply – Services

Is TDS Applicable – Applicable

Nature of Payment - Create

Name– Professional Services

Section – 197J

Payment Code – 97J

Rate for individuals/HUF with PAN- 10%

Rate for other deductee Types with PAN- 10%

Threshold / Exemption Limit – 30000

 

3) TDS on Professional Services – Duties and Taxes

Type of Duty /Tax – TDS

Nature of Payment – Professional Services

 

4) Landlord (Building) – Sundry Creditor

 Maintain Bill By Bill – Yes

 Statutory Information

 Is TDS Deductable – Yes

 Deducted Type – Individual / HUF Resident

 Deduct TDS in Same Voucher – Yes

Tax Registration Details

PAN/IT No- AKUPC2694J

 

5) Building Rent – Indirect Expense

  Statutory Information

  In Gst Applicable – Applicable

Set / Alter Gst Detail – Yes (18%)

Nature of Transaction- Purchase Taxable

Type of Supply – Services

In Tds Applicable – Applicable

Nature of Payment – Create

Name -  Building Rent

Section – 198D

Payment Code – 18D

Rate for individuals/HUF with PAN- 10%

Rate for other deductee Types with PAN- 10%

Threshold / Exemption Limit – 20000

 

6) TDS On Building Rent – Duties And Taxes

Type of Duty Tax – TDS

Nature of Payment – Building Rent

 

VOUCHER

F9 – Purchase voucher

Landlord (Building)

________________

Building rent                                                     80000

CGST                                                                  7200

SGST                                                                   7200

TDS on building rent                                          -8000

F5 – Payment Voucher

Press F Ctrl+F   (Auto Fill) Option

 

Types of Transaction          : Stat Payment

Tax Type                                : TDS

Period from                   : 1-Mar-2023 to 31-Mar-2023

Deducted Till Date               : 1-Mar-2023

Section                                   : 198D

Nature of Payment              : Building Rent

Deductee Status                  : All Items

Residential Status                : Resident

Cash/ Bank

 

View in Voucher

Cash

_____________

TDS on building Rent                                                   8000

Agst Ref Purc   8000.00 Dr

Income Tax       8000.00 Dr

Surcharge

Education Cess

Secondary Education Cess

 

 

F9 – Purchase Voucher

Pranav and company

__________________

Professional services                                       50000

CGST                                                                4500

SGST                                                                 4500

TDS on Professional Services                          - 5000

F5 – Payment Voucher

Press F Ctrl+F   (Auto Fill) Option

 

Types of Transaction          : Stat Payment

Tax Type                                : TDS

Period from                   : 1-Mar-2023 to 31-Mar-2023

Deducted Till Date               : 1-Mar-2023

Section                                   : 197J

Nature of Payment              : Professional Service

Deductee Status                  : All Items

Residential Status                : Resident

Cash/ Bank

 

View in Voucher

Cash

_____________

TDS on Professional Service                               5000

Agst Ref Purc   5000.00 Dr

Income Tax       5000.00 Dr

Surcharge

Education Cess

Secondary Education Cess

 

Exercise 2 

 

Create Ledger

1) Contractor – Sundry Cr. (Intrastate)

Maintain bill by bill – yes           

               Statutory information

Is TDS deductee – yes

Deductee type – individual / HUF resident

Deduct TDS in same voucher – yes

Tax Registration Details

PAN/IT No-  BODPM4264E

 

2) Job on Contractor – Indirect Expense 

             Statutory Information

Is GST applicable – Applicable

Set / alter GST detail – yes (18%)

Nature of Transaction- Purchase Taxable

Type of supply – Services

Is TDS applicable – Applicable

Nature payment – Create

Name- payment to contractor

Section – 194c

Payment code – 94c

Rate for individuals/HUF with PAN- 10%

Rate for other deductee Types with PAN- 10%

Threshold / Exemption Limit – 20000

3) TDS on Job contract – Duties and taxes

Type of duties / tax – TDS

Nature of payment – Payment to contractor

 

VOUCHER

F9 – Purchase Voucher

Contractor

__________________

Job on Contractor                                              30000

CGST                                                                  2700

SGST                                                                   2700

TDS on Job on Contractor                                - 3000

F5 – Payment Voucher

Press F Ctrl+F   (Auto Fill) Option

 

Types of Transaction          : Stat Payment

Tax Type                                : TDS

Period from                   : 1-Mar-2023 to 31-Mar-2023

Deducted Till Date               : 1-Mar-2023

Section                                   : 194C

Nature of Payment              : Job on Contractor

Deductee Status                  : All Items

Residential Status                : Resident

Cash/ Bank

 

View in Voucher

Cash

_____________

TDS on Job on Contractor                                  3000

Agst Ref Purc   3000.00 Dr

Income Tax       3000.00 Dr

Surcharge

Education Cess

Secondary Education Cess

 

Exercise 3 

Create Ledger

 

1) Gopal & Sons – Sundry Debtor

Maintain bill by bill – yes

Statutory information

Is TDS deducted – yes

Deductee type – Government

Deduct TDS in same voucher – yes

Tax Registration Details

PAN/IT No-  BODPM4264E

 

2) Service Provider – Indirect Income

              Statutory information

In GST Applicable – Applicable

Set / alter GST Detail – yes ( 18%)

Nature of Transaction- Sales Taxable

Type of supply – Services

In TDS applicable – Applicable

Nature of payment – Create

Name - TDS on services

Section – 512J

Payment code – 52J

Rate for individuals/HUF with PAN- 1%

Rate for other deductee Types with PAN- 1%

Threshold / Exemption Limit – 250000

 

3) TDS on services – Current Assets

Statutory information

In Deductee – yes

Treat as TDS Deductee – no

Deductee type – Government

Deduct as TDS in Same Voucher - yes

4) SBI Bank –                 Bank A/c

 

VOUCHER

F8 –Sale Voucher

Gopal and Sons

__________________

Service Provider                                       300000

CGST                                                          27000

SGST                                                          27000

 

F6 - Received Voucher

Cr. Gopal and sons                                       354000

Dr. TDS on service                                           3000

Dr. SBI bank                                                 351000