TDS in Tally

TDS in Yally

You can also do accounting work for TDS ie Tax Deducted at Source which is Indirect Tax.  TDS is one way to collect Income Tax.  When the buyer (eg Corporate (Corporation) or Non - Corporate) seller or.  Payment of party (eg Services (Services)) (eg Salary, Rent (Rent)), Interest on securities, Dividends, Insurance Commision, Professional Fees, Commission on Brokage, Commission on Lottery Tickets, etc.  ) While deducting TDS from the payment is made.  Here the Income Tax rules apply while deducting TDS.  And it is paid only to the Income Tax Department.

TDS in Tally

If your company deducts TDS and pays you, then in Tally this work is configured as follows.  For this, first of all, we have to adjust it according to TDS by the option (F11) called Company Features are given in Tally.  With this, its option box will go in front of you in this way.

TDS in Tally


You can activate the option called Enabled TD is by pressing Y key and when pressing enter, when the last option comes to Set / Modify other company features, then press Y key to do it too.  You can also enter the Enter TDS Deductor Details option given by pressing the Y key.  This will bring you an option box as per the picture.  Here you complete the options as follows and save it.  

 For ex.  

I.  Tax Assessment Number                         : PMYK001234 
II.  Income Tax Circle / Ward (IDS / TCS) : MBVL - DEL - TCS III.  Deductor / Collector Type                    :Government / Other 
IV.  Name of Person Responsible                :Ansul Rastogi 
V.  Designation                                            :CA 
In this way, we can activate TDS related facilities in Tally.  To get information about the important facts related to TDS done, you can use the option called Gateway Battery Masters.  
Using TDS to create accounts in Tally, 
after making TDS Yes in Tally, we can create Ledger as follows.

1.  Creating Tax Ledger 

     Steps: Gateway of Tally → Account Info.  → Ledger → Create       After that fill in the details and enter by pressing Enter.  _ 
I.  Name - TDS (For Ex .: Payment to Contractor) 
II.  Under - Duty & Taxes 
III.  Name of Duty & Tax - TDS
IV.     Nature of Payment - As per the picture (For Ex.                         Payment to Contractor) 
V. Ignore TDS Exemption Limit - Yes 
VI. Inventory Values ​​are affected - No 

3.  Making Party Ledger (Sundry Creditor) 

     Steps: Gateway of Tally → Account Info.  → Ledger → Create        After that fill the details in it and exit by pressing Enter.  
I.  Name - Sundry Creditor (For Ex .: Sanjiv Contractor) 
II.  Under - Sundry Creditor 
III.  Maintain Balances Bill by Bill - Yes 
IV.  Default Credit Period - Fill as per need.  
V.  Inventory Values ​​are affected - No 
VI.  Is TDS applicable - Yes.

4.  Entering Journal Voucher 

Steps: Gateway of Tally → Accounting Voucher → F7 

After that, fill in the details and exit by pressing Enter.  

I.  Date - Fill the date with F2.  _ _ _ 

II.  Dr  - Expense TDS (For Ex .: Contractor Payment) 

III.  Cr.  - PartyA / c / Sundry Creditor (For Ex. Sanjiv Contractor)

Thereafter Reference No.  , Set, and select an account from the list of TDS accounts.  Lastly insert the required narration.  Then select the TDS Deduction Option on the right-hand side to calculate TDS.  You can also do this by pressing the Alt + S key.


After crediting the party A / c in this account, another entry has to be made, for this, you press the Alt + S key.  After this, the option box will open in front of you as pictured.  Now you will select a letter from TDS Ledger and enter the tax rate and Surcharge and end the entry.  After completing this entry, there is information related to submitting some new TDS on the Accounting Voucher Screen.  

After completing the entry, it will appear on the screen as per the picture. 

 5. TDS Report (Form) a 
     Steps: Gateway of Tally  Display   Statutory Report → TDS Report →  Print Form 16A > ETDS Form / Print Form 27A 

 After this, according to the description given in the picture, you can analyze the TDS Report.  And if you want, you can print it out (by pressing Y) according to the need.





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