Tax Deducted At Source (Tds) Assignment in Tally

 

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Tax Deducted At Source (TDS) Practical Assignment

1.   Introduction

Read the below-given business scenario and implement it in TallyPrime by creating a company for ‘Fortune Solutions’.

1.1.           Business Scenario I

‘Fortune Solutions’ is providing retail software solutions to businesses.  Help them to set-up deduct TDS and pay to department.

Company’s statutory details for TDS deductions are as below:

Particulars	Number
TAN (Tax Deduction Account Number)	DELA02603G

 

Create creditors list as given below:

Name	Deductee Type	PAN No	Threshold Limit	TDS %age
N A Doshi and Co.	Partnership Firm	AAAPC1234A	30,000	10%
Mr. Chandrashekhar	Individual/HUF - Resident	NO PAN	75,000 per annum / 30,000 per single Bill	1% if PAN is Given,   20% if No PAN given

 

Record transactions as given-below:

·       On 1^st May, capital of 5,00,000 introduced by proprietor – SBI Bank A/c 3,00,000 and Cash 2,00,000.

·       On 3^rd April, N A Doshi and Co. gave a Bill of 1,00,000 for his professional services for forming this Company.  Book this expense as ‘Professional Fees’ (TDS Nature of Payment - Fees for Professional Or Technical Services) and deduct TDS in the same voucher.

·       On 15^th April, paid 90,000 to N A Doshi and Co. against the bill received on 1^st April through Bank.

·       On 5^th May, paid TDS to department from Bank A/c using ‘Stat Payment’ option in Payment Voucher.  Challan reconciliation details – Cheque No. 121121, Cheque Date 05/05/2020, BSR Code – 0011349, Challan No. 67885544, and Challan Date – 05/05/2020, Bank – SBI and Branch – J P Nagar, Bengaluru.

·       On 10^th May, received a bill of 45,000 contractor Mr. Chandrashekhar and booked this expense as ‘Contract works’ with TDS deduction.

 

2.   outcome

 

Below are the outcomes after setting up TDS as per business scenarios, this is for your reference to ensure that you have done it properly.

 

2.1.           tds outstanding's report

 

 

 

2.2.           form 26q

 

 

 

2.3.           ledgers without pan