How to Pass TDS Entry in Tally ERP 9 GST with Example

Welcome to During this article, you’ll discover How to Pass TDS Entry in Tally with full Details are given underneath. TDS is one of the techniques of accumulate Income Tax, which make sure normal course of income to the Government. You’ll share the post along with your Companions as all examination material is free of cost.

What is TDS?

TDS stand for Tax Deducted at Source. The model of TDS was set up in the Income Tax Act, 1961, with the purpose of deducting the tax on an income, at the basis of income. It is one of the techniques of accumulate Income Tax, which make sure normal course of income to the Government.

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TDS Entry in Tally Procedure

  • A vendor offer services to the consumer.
  • The consumers remove the Tax at the moment of payment of progress or while bookkeeping the Bills received.
  • The consumer deposits the subtracted amount to the selected branches of the certified bank
  • The consumer issues Form No.16A to the vendor
  • The consumer files yearly incomes by electronic means to the Income Tax department.
  • The seller files income, along with Form 16A declare the credit of the Tax deducted at source.

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How to Pass TDS Entry in Tally Record Payment Entry in Tally.ERP 9

1. Enabling TDS in Tally.ERP9

  • Go to start screen of Tally > F11: Features > Statutory & Taxation
  • Put allow Tax Deducted at Source (TDS) to Yes in the Company Operations modification panel
  • allow the selection Set/alter TDS informations
  • Please type all information’s in Company TDS Deductor particulars as above.
  • Push F12: higher Configure in above display for Configure TDS
  • All the association category will show in the Collector/Deductor category list for the selection Deductor Type
  • All Surcharges information valid to TDS will be allow in next option
  • The 3rd selection is to allow show of the alternate contact information of TDS

2. Making TDS Nature of Payment TDS Entry in Tally

For expenses magnetize TDS, the appropriate character of payment is defined by the division with related tax rate, part, payment code, and threshold limit. While making a TDS Nature of Payment, you can press Ctrl+C to pick the necessary nature of payment.

  • Go to start point of Tally > Accounts Info. > Statutory Info. > TDS Nature of Payments > generate
  • Press F12. Put agree to PAN tax rate to Yes, to type the tax rates for Individual / HUF for every nature of payment.
  • Press Ctrl+C to inspection the directory of Nature of Payment and choose the required Nature of Payment.
  • Type the Rate of TDS for With PAN and not including PAN. The same show in Rate for further deductee types.
  • Type the Threshold/exemption limit as relevant.
  • Press Enter to save the information’s.

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3. Accounting for TDS on Expenses TDS Entry in Tally

You can generate accounting receipts for your company operating expense, alongside with the relevant TDS.

Model: On 30-4-2020, XYZ Company paid Ronald Associations Rs. 5,00,000 as Rent.

  • Go to Start point of Tally > Accounting Voucher > F7: Journal.
  • Click F2: day to modify the date to 30-4-2020.
  • Debit the Rent expenditure ledger.
  • Enter Rs. 5,00,000 in the sum section.
  • Credit Ronald Associations. The sum after TDS subtraction will show in the sum section automatically.
  • Press Enter.
  • Type the Bill-wise information’s, as mandatory.
  • Press Enter.
  • Credit the TDS tax ledger. The TDS sum will automatically filled in the Amount section.
  • Press Enter.
  • Type describing, if essential. The Journal voucher show.

4. Payment Transaction TDS Entry in Tally

You can documentation a payment operation with addition of the required TDS to be paid to the government.

Model 1: On 05-05-2020, XYZ Company paid TDS subtracted in the month of April 2020 to the government straight.

  • Go to start of Tally > Accounting Vouchers > F5: Payment.
  • Hit S: Start Payment.
  • Pick TDS as the Tax category.
  • Type the time From and to dates.
  • Type the Deducted Till Date.
  • Pick the part from the directory of segment.
  • Pick the mandatory Nature of Payment.
  • Pick the Deductee position.
  • Pick the Residential position.
  • Pick whichever bank or cash ledger in the Cash/Bank section. The payment voucher will be automatically filled with the appropriate values. The legal Payment Details screen show
  • Push Enter.
  • Type the Bank Allocation information as necessary.
  • Enter describing, if essential. The Payment invoice shows
  • Push Enter to save the statement.

Model 2: On 05-05-2020, Ronald Associations paid the TDS deducted to the government on behalf of Zee Company.

  • Go to Start point of Tally > Accounting Voucher > F7: Journal.
  • Hit F2: Date to modify the date to 05-05-2020.
  • Debit TDS tax ledger.
  • Credit Ronald Associations. The Journal invoice shows
  • Push Enter to save.

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