Tax Deducted at Source in Tally Prime


TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.

  • Go to Gateway of Tally prime -> masters-> TDS Nature of Payment-> Create .
  • Press F12 .
Configuration
  • Set Allow transporter category to Yes , to capture the value of transaction recorded with party having PAN, under Exempt in lieu of PAN available in Form 26Q .
  • Set Allow no PAN tax rate to Yes , to enter the tax rates for Individuals/HUF for each nature of payment
  • Press Enter to save.

1. Go to Gateway of tally prime > masters > create > Ledger > TDS Nature of Payment > Create .
2. Enter the name of the sub-section as Leaf co. You can give your own name but ensure that the section code and payment code are selected correctly.
3.Select Section as 194B and Payment code as 94B .

Nature Of Payment

4. Press Ctrl+A to accept.
5. Enter the Threshold / exemption limit as applicable .


1. Enter the deductee tax details in journal voucher.

Journal Lotter Ticket

2. Enter the deductee tax details in payment voucher.

Payment VoucherS

3. Enter the tax payment details.

Tds Lottery

1.Enter the deductee tax details in journal voucher or purchase voucher.

Purchase Voucher

  • Enter the Name and select Sundry Creditor in the Under field.
  • Enter the Name and select Sundry Creditor in the Under field
  • Enable the option Is TDS Deductible,to allow TDS deduction for the ledger.
Advance

  • . Select a Deductee Type from the list.
  • Enable Deduct TDS in Same Voucher , if required, and select the TDS Nature of Payment. You can also select to All Items ..
  • Set Use Advanced TDS Entries .
Advance Bills

2. Enter the advance details in payment voucher.

Sam Kuma

3. Enter the advance details in journal voucher

Journa Insurance
Tds Nature Payment


Reports

1. Go to Gateway of Tally prime -> Go to ->(alt + G)

Tds Reports

  • This payment is other than payment of salary, and the payer has to file TDS return in Form 26Q. 26Q is to be submitted on a quarterly basis.
  • Total amount paid during the quarter and TDS amount deducted on such payments have to be reported in 26Q.
Go To Tds Reports
Form26q


Tax Deducted at Source


Section Nature of Payment Threshold Rs Indv / HUF TDS Others TDS
Existing Rate (%) New rate (%) wef 14.05.2020 Rate (%)
192 Salaries - Basis on Slab
192A Premature withdrawal from EPF 50,000 10 -
193 Interest on Securities/Debenture’s 10,000 10 7.5 10
194 Dividends (other than listed Companies) - - 7.5 10
194A Interest (Banks)/ For Senior Rs 50000 40,000 10 7.5 10
194A Interest (Others) 5,000 10 7.5 10
194B Winning from Lotteries 10,000 30 30 30
194BB Winning from Horse Race 10,000 30 30 30
194A Contractor – Single Transaction 30,000 1 0.75 1.5
194C Contractor – During the F.Y. 1,00,000 1 0.75 1.5
194C Contractor – During the F.Y. 1,00,000 1 0.75 1.5
194C Transporter (44AE) declaration with PAN
194D Insurance Commission (15G – 15H allowed) 15,000 5 3.75 3.75
194DA Life insurance Policy 1,00,000 5 3.75 3.75
194E Non-Resident Sportsmen or Sports Association 1,00,000 20 20
194EE NSS 2,500 10 7.5 7.5
194F Repurchase Units by MFs 20 15 15
194G Commission – Lottery 15,000 5 3.75 5
194H Commission / Brokerage 15,000 5 3.75 5
194I Rent of Land and Building – F&F 2,40,000 10 7.5 7.5
194I Rent of Plant / Machinery / Equipment 2,40,000 2 1.5 1.5
194IB Rent by Individual / HUF 50000/PM 5 3.75 3.75
194IA Transfer of certain immovable property other than agriculture land 50,00,000 1 0.75 0.75
194J Professional Fees / Technical Fees etc. 30,000 10 7.5 7.5
194J Payment to FTS, Certain Royalties and Call Centre Oparator 30,000 2 1.5 1.5
194IA Compensation on transfer of certain immovable property other than agricultural land 2,50,000 10 7.5 7.5
194LB Income by way of interest from infrastructure debt fund 5 5 5
194LD Interest on Certain bonds. Securities 5 5 5

Tax Deducted at source Sum


particular DR CR
capital 3,10,00,000
Reserves & surplus 2,75,000
Bills for collection 40,000
Debenture’s 13,00,000
Leas hold property 50,000
Indian Overseas Bank 80,00,000
Bank O/d 5,25,000
Cash 10,000
Royalties 50,00,000

1. Jun 10 M/s. Leaf co (Local Authority) wins the lottery ticket. So the company decided to pay a winning amount for Rs.7, 00,000. The deducted taxable amount pays to Indian Overseas bank. And remaining amount paid to party by cheque. (Nature of payment: winning from lotteries and crossword puzzles)

2. Jun15 M/s. Grand world (P) ltd has decided to pay a Rent of Building Rs.3, 00,000 to pay a party M/s. Harry potter (Company resident). The deducted taxable amount pays to Indian Overseas Bank. (Nature of Payment: Rent of land, building and furniture’s)

3.July 07 M/s Ramadevi & Co pay advance Rs. 20000 for insurance commission to pay a party M/s Taehyung ltd (Partnership firms). The deducted taxable for the advance payment. on July 10 Ramadevi paid actual payment of insurance commission is Rs. 50000 to pay Taehyung ltd. The overall deducted taxable amount pays to Indian Overseas Bank. (Nature of Payment: Insurance Commission)