Press F11 (Features) > set Enable Tax Deducted at Source (TDS) to Yes.
If you do not see this option:
Set Show more features to Yes.
Set Show all features to Yes.
The Tax Deducted at Source Deductor Details screen appears.
Press F12 (Configure).
Set the option Show All Deductor types to Yes, to view all the deductor types.
Set the option Enable surcharge and cess details for Tax Deducted at Source to Yes, to enter the surcharge and cess details.
Set the option Provide alternate contact details to Yes, to enter the company’s STD Code, Phone No. and E-Mail.
Press Ctrl+A to save.
Enter the TAN registration number.
Enter the Tax deduction and collection Account Number (TAN).
Select the Deductor Type.
Enter the details of Deductor branch/division.
Enable the option Set/alter details of person responsible to display the Person Responsible Details screen. Enter the relevant details:
Press Enter. The TDS Deductor Details screen appears.
Set Ignore IT Exemption Limit for TDS Deduction to:
Yes, if you don’t want to consider the IT exemption limit.
No, if you want to consider the IT exemption limit.
Set Activate Tax Deducted at Source for stock items to:
Yes, if you want to define TDS rate in stock item.
No, if you do not want to define TDS rate in stock item.
Set Provide surcharge and cess details to Yes.
In the TDS Deductor Details screen, press F12 (Configure) > set Enable surcharge and cess details for Tax Deducted at Source to Yes.
.Enter the surcharge and cess details for each deductee status. You can enter the required surcharge slab details with the applicability date.
Accept the screen. As always, you can press Ctrl+A to save.
TDS Nature of Payment
Create TDS Nature of Payment
Gateway of Tally > Create > type or select TDS Nature of Payments > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > Tax Deducted at Source Nature of Payments > and press Enter.
Press F12 (Configure).
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 tax rate without PAN to Yes, to enter the tax rates for Individuals/HUF for each nature of payment.
Press Enter to save.
Press Alt+H (Helper) to view the list of Nature of Payment.
Select the required Nature of Payment. The Section and Payment code are displayed automatically.
Enter the Rate of TDS for With PAN and Without PAN. The same appears in Rate for other deductee types.
Enter the Threshold/exemption limit as applicable.
Accept the screen. As always, you can press Ctrl+A to save.
To view the history of Rate and Exemption Limit Details provided for different dates,
If you need to use this option only for the current master, press Ctrl+I (More Details) > type or select TDS Details (History)> and press Enter.
The details will appear with the breakup of rate With PAN and Without PAN as shown below:
Create sub-section for Tax Deducted at Source Nature of Payment Section 194J
Gateway of Tally > Create > type or select TDS Nature of Payments > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > TDS Nature of Payments > and press Enter.
Enter the name of the sub-section as Fees for Professional Services. You can give your own name but ensure that the section code and payment code are selected correctly.
Select Section as 194J and Payment code as 4JB.
Accept the screen. As always, you can press Ctrl+A to save.
Similarly, you can create nature of payment for the other sub-section as shown below:
TDS Ledger
A TDS ledger is used for recording duties in TDS related transactions.
Gateway of Tally > Create > type or select Ledger > and press Enter.
Alternatively, press Alt+G (Go To) > CreateMaster > Ledger > and press Enter.
Enter the Name.
Select Duties and Taxes as the group name in the Under field.
Select TDS as the Type of duty/tax.
Select a Nature of Payment from the List of Nature of Payments.
Press Enter. The Ledger Creation screen appears.
Accept the screen. As always, you can press Ctrl+A to save.
Expenses Ledger
An expenses ledger is used for booking expenses. It can be created by selecting the Nature of Payment during ledger creation.
Gateway of Tally > Create > type or select Ledger > and press Enter.
Alternatively, press Alt+G (Go To) > CreateMaster > Ledger > and press Enter.
Enter the Name.
Select Indirect Expenses as the group name in the Under field.
Set Inventory values are affected to No.
Enable the option Is TDS Applicable.
Select the Nature of Payment from the List of Nature of Payments.
Accept the screen. As always, you can press Ctrl+A to save.
Party Ledger
TDS will be deducted on the basis of the deductee type, which has to be defined in the party ledger.
Gateway of Tally > Create > type or select Ledger > and press Enter.
Alternatively, press Alt+G (Go To) > CreateMaster > Ledger > and press Enter.
Press F12 (Configure) and set the option Allow advanced entries in TDS masters to Yes.
Enter the Name and select Sundry Creditor in the Under field.
Enable the option Maintain bill-by-bill, to track the TDS bills.
Enable the option Is TDS Deductable, to allow TDS deduction for the ledger.
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 to Yes.
You can set the ledger to ignore income tax and/or surcharge exemption limits.
Enable the option Set/Alter Zero/Lower Deduction to Yes.
If the Deductee type is a Resident, you can set the required Nature of Payment for Zero/Lower Rate, as shown below:
Based on the selection made, the transactions recorded using these ledgers will appear in the relevant sections of Form 26Q.
If the Deductee type is a Non-Resident, you can set the required Nature of Payment for Zero/Lower Rate/DTAA, as shown below:
Based on the selection made, the transactions recorded using these ledgers will appear in the relevant sections of Form 27Q.
Enter the Mailing Details. Enable Provide Bank Details, to enter the bank details for the ledger.
Enter the PAN/IT No. under Tax Information. When the PAN is not available, enter one of the terms given below as the PAN/IT No., based on the corresponding reason:
PANAPPLIED – If the party has given a declaration stating that he/she has applied for PAN, but are yet to receive the same.
PANINVALID – If the PAN format provided by the party is incorrect.
PANNOTAVBL – If the party has not given any declaration or PAN number.
Enable the option Provide PAN Details, if required. The Ledger Creation screen appears.
Accept the screen. As always, you can press Ctrl+A to save.
Fixed Asset Ledger
A Fixed Asset ledger is used for recording fixed assets and capital goods.
Gateway of Tally > Create > type or select Ledger > and press Enter.
Alternatively, press Alt+G (Go To) > CreateMaster > Ledger > and press Enter.
Enter the Name.
Select Fixed Assets as the group name in the Under field.
Set Inventory values are affected to No.
Set Is TDS Deductable to Yes.
Set Treat as TDS Expenses to Yes.
Select the required Nature of Payment.
Enter the Mailing Details and Tax Registration Details, as required. The Ledger Creation screen appears.
Accept the screen. As always, you can press Ctrl+A to save.
Stock Item
Stock items with TDS details can be created only if it is configured on the Company TDS Deductor Details page.
Gateway of Tally > Create > type or select Stock Item > and press Enter.
Alternatively, press Alt+G (Go To) > CreateMaster > Stock Item > and press Enter.
Enter the Name.
Select a stock group from the List of Stock Groups in the Under field.
Select a unit of measurement in the Units field.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Stock Items > press Enter.
Enable the option Set/alter TDS details.
In the Stock Item Creation screen, press F12 (Configure) > Set TDS Details to Yes.
If you do not see this option, ensure that Enable Tax Deducted at Source (TDS) is set to Yes in F11 for your company.
Select the Nature of Payment.
Press Enter. The Stock Item Creation screen appears.
Accept the screen. As always, you can press Ctrl+A to save.
Record TDS on Purchase of Goods (Under Section 194Q)
Configure Masters
TDS Nature of Payment
Gateway of Tally > Create > type or select TDS Nature of Payments.
Alternatively, press Alt+G (Go To) > Create Master > type or select TDS Nature of Payments.
The TDS Nature of Payment Creation screen appears.
Enter the required fields in the TDS Nature of Payment Creation screen, as applicable.
For TDS Nature of Payment configured below the Threshold Limit.
For TDS Nature of Payment configured above the Threshold Limit.
Since there is no threshold limit for the Nature of Payment configured above the Threshold Limit, you can leave the Threshold/exception limit field blank.
Press Y to accept the screen. You can also press Enter to save the master screen.
Purchase Ledger
Gateway of Tally > Create (create a Purchase ledger, if not available) or Alter (to open a Purchase ledger if you have created it earlier) > type or select Ledger > select Purchase (if you are altering the existing Purchase ledger) > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master/Alter Master > type or select Ledger > select Purchase (if you are altering the existing Purchase ledger) > and press Enter.
Under Statutory Details, set the options:
Is TDS applicable to Applicable.
Nature of Payment to Any.
If you do not see the TDS field under Statutory Details, press F12 (Configure) and set Provide TDS details to Yes.
Specify the other relevant details in the Purchase ledger screen, as needed.
Press Y to accept the screen. As always, you can press Ctrl+A to save the master.
Record Purchases Below Threshold Limit (Exempt from TDS)
While recording a Purchase voucher, select the common Purchase ledger configured for TDS applicability. The TDS Nature of Payment Details screen appears.
If you want to know how to record a Purchase voucher,
Select the Nature of Payment configured below the Threshold Limit from the List of TDS Nature Of Pymt.
Once you have entered the stock item details, select CGST and SGST ledgers. The taxes get calculated automatically.
Provide the Narration, if needed.
Press Y to accept the screen. As always, you can press Ctrl+A to save the voucher.
Record Purchases Above Threshold Limit (TDS Applicable)
As per your business needs, you can record TDS purchases with or without inventory.
While recording a Purchase voucher, select the common Purchase ledger configured for TDS applicability. The TDS Nature of Payment Details screen appears.
If you want to know how to record a Purchase voucher,
Select the Nature of Payment configured below the Threshold Limit from the List of TDS Nature Of Pymt as you did previously while recording purchase transactions for the party.
Once you have entered the stock item details, select CGST and SGST ledgers. The taxes get calculated automatically.
Provide the Narration, if needed.
Press Y to accept the screen. As always, you can press Ctrl+A to save the voucher.
Once you have accepted the voucher, you will see an information message on the screen indicating that you have already crossed the party Threshold Limit.
Select No to go back to the transaction, select the appropriate Nature of Payment from the ledgers, and apply TDS.
Modify the Nature of Payment in Purchase ledger.
Select the common Purchase ledger. The TDS Nature of Payment Details screen appears.
Select the Nature of Payment configured above the Threshold Limit from the List of TDS Nature Of Pymt.
Select TDS from the List of Ledger Accounts. It will deduct the TDS amount automatically since the party has already crossed the Threshold Limit.
The Purchase voucher with TDS appears as shown below: The Purchase voucher without inventory as shown below:
Advance Tax Deducted at Source Payment
While recording a Payment voucher, enter the Amount to be paid as an advance to your party. The Bill-wise Details for: Party screen appears.
If you want to know how to record a Payment voucher,
Enter the details in the Bill-wise Details for: Party screen.
Select Advance under Type of Ref.
Enter Name for the advance payment.
For example, you can enter Name as Adv-1, Adv1, etc. as per your reference. The Amount will be prefilled from the Payment voucher screen.
Provide the Narration, if needed.
For example, you can add ‘Advance TDS Payment’ in the Narration field to track the advances paid to the party.
Press Y to accept the screen. As always, you can press Ctrl+A to save the voucher.
To track the Threshold limit for any particular party using the Range (Alt+F12) feature:
Alt+G (Go To) > type or select Ledger Vouchers > select the Ledger > and press Enter.
Alternatively, Gateway of Tally > Display More Reports > Account Books > Ledger > select the Ledger > and press Enter.
Use the Range feature to filter the list of the party in terms of Narration.
Press Alt+F12 (Range) in the Ledger Vouchers screen. The Range of Information in Report screen appears.
Enter the keywords used in the Narration to view the relevant payment entries.
Press End of List to go back to the Ledger Vouchers screen. The Ledger Vouchers report will filter the list of the party whose Narration is provided as ‘Advance TDS Payment’.
Press Enter to drill down from the relevant transaction to apply TDS.
Provide TDS details.
Select TDS from the List of Ledger Accounts. The TDS Nature of Payment Details screen appears.
Select the Nature of Payment configured above the Threshold Limit from the List of TDS Nature Of Pymt to deduct the TDS from the advance payment.
Press Y to accept the screen. As always, you can press Ctrl+A to save the voucher.
Note: If the TDS amount is not calculated when the transaction is altered, then you can either enter the TDS amount directly in the field, or delete this transaction and record a fresh one by entering the same values.
Adjust TDS in Purchase As Per Advance Payment
If you are raising a purchase invoice that is higher or lower in value than the original advance amount, then you can adjust the TDS amount in the transaction accordingly.
When Purchase Value Is Higher Than the Advance
While recording a Purchase voucher, enter the invoice amount. The TDS Nature of Payment Details screen appears.
If you want to know how to record a Purchase voucher,
Enter details in TDS Nature of Payment Details
Select Nature of Payment configured above the Threshold Limit from the List of TDS Nature Of Pymt as the party has already crossed the threshold limit.
Change the Assessable Value manually. The assessable value will be prefilled from the Purchase voucher screen.
If you do not see the Assessable Value field, then go back to the Purchase voucher screen, press F12 (Configure), and set Modify Tax details for TDS to Yes. Later, on the TDS Nature of Payment Details screen, press F12 (Configure) and set Allow modification of assessable amount to Yes.
Provide TDS details.
Select TDS from the List of Ledger Accounts. The TDS Against Advance Payment screen appears.
Set Adjust against advance TDS payment to Yes.
Provide the details in TDS Nature of Payment Details screen to settle the bills.
For the Advance paid to the party:
Select Asgt Ref under Type of Ref.
Select the advance bill paid from Advance Tax Bills screen under Name field. The Nature of Payment and Assessable Amount appears automatically.
For the balance amount entered in the Assessable Value:
Select New Ref under Type of Ref.
Enter the Name.
Select the Nature of Payment from the List of Nature of Pymt(s). The Assessable Amount and TDS will be calculated automatically.
Provide the Narration, if needed.
Press O (Override (accept without conflicts)).
When Purchase Value Is Lower Than the Advance
While recording a Purchase voucher, enter the invoice amount. The TDS Nature of Payment Details screen appears.
If you want to know how to record a Purchase voucher,
Select Not Applicable from the List of TDS Nature Of Pymt, as your entire purchase value is covered under the previous advance.
The Assessable Value will be prefilled from the Purchase voucher screen.
If you do not see the Assessable Value field, then go back to the Purchase voucher screen, press F12 (Configure), and set Modify Tax details for Tax Deducted at Source to Yes. Later, on the TDS Nature of Payment Details screen, press F12 (Configure) and set Allow modification of assessable amount to Yes.
In the Bill-wise Details for: Party screen, select the bill against which the advance to the party is recorded.
Provide the Narration, if needed.
Press Y to accept the screen. As always, press Ctrl+A to save the voucher.
Note: Tax Deducted at Source will not be deducted for the party whose purchase value is less the advance amount unless the advance amount is completely exhausted.
Purchase Return/Cancellation
While recording a Debit Note, enter the Amount for the return or cancellation against the previous purchase. The TDS Nature of Payment Details screen appears.
If you want to know how to record a Debit Note for Purchase return or cancellation,
Select the Nature of Payment that was selected in the original TDS purchase transaction. The Assessable Value will be prefilled from the Purchase voucher screen.
Select CSGT andSGST ledgers. It will calculate the amount automatically.
Note: When recording a Debit Note, you may provide the GST details as well. You can provide details such as Supplier’s Debit/Credit No., reason for issuing the note, and Date.
Press Enter on the total Amount. The TDS Nature of Payment Details screen appears.
Provide the details in TDS Nature of Payment Details screen.
Select Agst Ref under Type of Ref.
Select the purchase transaction against which you are passing the Debit Note from the Tax Details screen under Name field. The Nature of Payment, and Assessable Amount will appear automatically.
Select End of List. The Bill-wise Details for: Party screen appears.
In the Bill-wise Details for: Party screen, select the purchase bill against which you are issuing the Debit Note.
The Debit Note appears as shown below:
Provide the Narration, if needed.
Press Y to accept the screen. As always, you can press Ctrl+A to save the voucher.
Navigation to Form 26Q Report: Alt+G (Go To) > type Form 26Q > and press Enter.
Alternatively, Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > Form 26Q > and press Enter.
TDS Exemption for Government-Listed Seller
Configure Government-Listed Seller
Gateway of Tally > Create (create a Government Party ledger, if not available) or Alter (to open a Government Party ledger if you have created it earlier) > type or select Ledger > select Government Party (if you are altering the existing Government Party ledger) > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master/Alter Master > type or select Ledger > select Government Party (if you are altering the existing Government Party ledger) > and press Enter.
Under Statutory Details, set the options:
Is TDS Deductable to Yes.
Deductee type to Government.
If you do not see the Statutory Details field, then press F12 (Configure) and set Provide TDS details to Yes.
Deduct TDS in Same Voucher to Yes.The Deduct TDS in Same Voucher screen appears.
If you do not see the Deduct TDS in Same Voucher screen, then press F12 (Configure) and set Allow advance entries in TDS master to Yes.
Select All Items from the List of Nature of Payments.
Use Advanced TDS Entries to Yes.
If you do not see this field under Statutory Details, the press F12 (Configure) and set Allow advance entries in TDS master to Yes.
The Advanced TDS Entries screen appears.
Set the option for Set/Alter Zero/Lower Deduction to Yes. The Zero/Lower Deduction Details screen appears.
Provide the details in Zero/Lower Deduction Details screen:
Select Nature of Payment configured above the Threshold Limit from the List of Nature of Payments.
Select 197A from the List of Provisions.
Provide a unique certificate number, preferably, 0000 under Certificate No./Date.
Enter Applicable From date.
Enter Applicable To date.
The TDS value will be prefilled with 0% as we have selected zero rated.
Select End of List twice to return to the Ledger screen.
Set the other configurations in the Ledger Creation/Alteration screen, as needed.
Press Y to accept the screen. As always, you can press Ctrl+A to save the master.
Record TDS Purchase with Government-Listed Seller
While recording a Purchase voucher, select the Party as Government-listed sellers.
If you want to know how to record a Purchase voucher,
Enter the Amount. The TDS Nature of Payment Details screen appears.
Enter the details in TDS Nature of Payment Details screen.
Select the appropriate Nature of Payment from the List of TDS Nature Of Pymt. The Assessable Value will be prefilled from the Purchase voucher screen.
Select CGST and SGST ledgers. The taxes get calculated automatically.
The Purchase voucher with the party as Government-listed sellers as shown below:
Note: Even after CGST and SGST deductions, the TDS will not be deducted because we have already set the party master as exempt from any TDS deductions.
Provide the Narration, if needed.
Press Y to accept the screen. As always, you can press Ctrl+A to save the voucher.
Update Books as per Your Business Needs
Account for purchases booked under 194Q without enabling TDS
If you have recorded transactions without enabling TDS in the purchase ledger, you can follow the steps given below to update your books of accounts.
Ensure the party ledger is enabled for TDS.
Ensure the purchase ledger is enabled for TDS.
Set the option Is TDS applicable to Yes, and select the TDS Nature of Payment.
Open the Form 26Q report to view the transactions.
As the party and purchase ledgers are now enabled for TDS, all the transactions recorded using these ledgers will appear under Uncertain Transactions.
Drill-down from Uncertain Transactions. The transactions will appear under No link is available in booking and booking with deduction voucher.
Press Alt+L (Link All). All the transactions will get included in the returns, and appear in the respective sections of Form 26Q.
Identify the party ledgers with whom the transactions have crossed the threshold limit, and assign the applicable TDS nature of payment in the voucher alteration screen.
Press Alt+G (Go To) > type or select Ledger Vouchers > and press Enter.
Select the party ledger that was used in the transactions included in Form 26Q, by pressing Alt+L (Link All).
Filter the report to view only the purchase transactions. You can press F8 (Columnar) or Alt+R (Range) to filter the transactions.
Manually identify the voucher number from which the transaction value has exceeded the TDS threshold limit.
Open the identified voucher. In the voucher alteration screen, select the TDS nature of payment
Use this TDS nature of payment for all the subsequent recorded with the selected party.
By following these steps, you can update the purchase transactions in your books of accounts.
TDS on Purchases
You can create an accounting voucher for recording purchases with applicable TDS.
Configure Masters
TDS Nature of Payment
Gateway of Tally > Create/Alter > type or select TDS Nature of Payments > select any Nature of Payment (if you are altering any existing Nature of Payment) > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master/Alter Master > type or select TDS Nature of Payments > select any Nature of Payment (if you are altering any existing Nature of Payment) > and press Enter.
The TDS Nature of Payment Creation/Alteration screen appears.
Enter the required fields in the TDS Nature of Payment Creation/Alteration screen, as applicable.
Press Y to accept the screen. You can also press Enter to save the master screen.
Party Ledger
Gateway of Tally > Create/Alter > type or select Ledger > select any Party ledger (if you are altering any existing Party ledger) > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master/Alter Master > type or select Ledger > select any Party ledger (if you are altering any existing Party ledger) > and press Enter.
Under Statutory Details, set the options:
Is TDS Deductable to Yes.
If you do not see the Statutory Details field, then press F12 (Configure) and set Provide TDS details to Yes.
Deductee type to Individual/HUF-Resident.
Deduct TDS in Same Voucher to Yes. The Deduct TDS in Same Voucher screen appears.
If you do not see the Deduct TDS in Same Voucher screen, then press F12 (Configure) and set Allow advance entries in TDS master to Yes.
Select All Items from the List of Nature of Payments.
Use Advanced TDS Entries to Yes If you do not see this field under Statutory Details, the press F12 (Configure) and set Allow advance entries in TDS master to Yes.
The Advanced TDS Entries screen appears.
Set the option for Set/Alter Zero/Lower Deduction to Yes. The Zero/Lower Deduction Details screen appears.
Provide the details in Zero/Lower Deduction Details screen:
Select the Nature of Payment configured at a higher rate from the List of Nature of Payments.
You can create Nature of Payment on the fly by pressing Alt+C.
Select 197 Lower Deduction from the List of Provisions.
Provide a unique certificate number under Certificate No./Date.
Note: We would recommend using certificate number as ‘0000’, so that the future migration will be taken care of automatically.
Enter Applicable From date.
Enter Applicable To date.
Enter the TDS at twice the rate as specified under the relevant category or at a rate of 5%, whichever is higher. Ctrl+Enter on the master will open the master on the fly so that you can check the specified TDS rate before applying.
Select End of List twice to return to the Ledger screen.
Set the other configurations in the Ledger Creation/Alteration screen, as needed.
Press Y to accept the screen. As always, you can press Ctrl+A to save the master.
Record Credit Purchase
While recording a Purchase voucher, enter the Amount. The TDS Nature of Payment Details screen appears.
If you want to know how to record a Purchase voucher
Select the appropriate Nature of Payment from the List of TDS Nature Of Pymt. The Assessable Value will be prefilled from the Purchase voucher screen.
Select TDS from the List of Ledger Accounts. It will deduct the TDS amount accordingly.
The TDS will be calculated based on the applicable tax rate configured at twice the rate as specified under the relevant category or at a rate of 5%, whichever is higher.
Provide the Narration, if needed.
Press Y to accept the screen. As always, you can press Ctrl+A to save the voucher.
TDS on Payment
Adjust TDS in Purchase Against Advance
You can create an accounting voucher for the advance payment made to a party or a Specified Person with applicable TDS configured at a higher rate. You can adjust the advance paid by recording a purchase invoice on to the party.
Purchase Return/Cancellation
If you want to record a return or cancellation against a previous purchase, then you can record this using a Debit Note with the Specified Person with applicable TDS configured at a higher rate.
No PAN
If a PAN is not available for any party, TDS will be calculated using the rate specified for no PAN in the category master.
However, in some cases the tax rate may be configured as 15% with PAN, while without PAN it is 20%. As a result of doubling the 15% tax rate, the specified value becomes 30%, which is higher than 20% (tax incurred when no PAN is provided). TDS will be deducted at the rate of whichever is higher, in this case, it would be 30%.
File Returns Under Section 206AB
You may have configured the TDS Party ledger so that the tax deduction takes place based on the higher rate. In the Zero/Lower Collection Details screen of the Party ledger, the Certificate No. must be 0000, which will help you identify the transactions recorded for the Party.
Now, according to the recently implemented changes by the government, before filing your returns, you need to highlight the transactions in which the tax is deducted on the higher rate. It means that you will need to identify the transactions with the Party and highlight them with the norms set by the government.
Here are the details of the remark value to added in the transactions before filing returns:
Sl. No.
Return Form
Scenario
Remark Value to Highlight the Transaction before Filing Returns
1.
Form 26Q
Tax deduction is on the higher rate under section 206AB for non-filing of return of income.
Add a remark value U.
2.
Form 27Q
Tax deduction is on the higher rate under section 206AB for non-filing of return of income by the non-resident having a permanent establishment in India.
Debit the expense ledger and enter the amount.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Credit the party ledger and enter the amount.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Accept the screen. As always, you can press Ctrl+A to save.
Debit the party ledger and enter the TDS amount.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Enter the required details in the Bill-wise Details screen.
Press Enter.
Credit the TDS ledger and enter the amount.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Enter the required details in the TDS Details screen.
The Journal voucher appears as shown below:
Accept the screen. As always, you can press Ctrl+A to save.
Purchase of Software
Nature of payment for taxable purchase of software product
Gateway of Tally > Create > type or select TDS Nature of Payments > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > TDS Nature of Payments > and press Enter.
Enter the Name of the nature of payment.
Enter 194J and 94J in the fields Section and Payment Code, respectively.
Set the option Is software royalty to Yes.
In the TCS Nature of Payment Creation screen, press F12 (Configure) > set the option Allow Software Royalty to Yes. to get the field Is software royalty
Enter the Rate of tax.
Enter the amount up to which tax is not applicable for this category, in the field Threshold/exemption limit, if any.
Accept the screen. As always, you can press Ctrl+A to save.
Press Ctrl+H (Change Mode) to select the required voucher mode (Accounting Invoice, in this case).
Press F12 (Configure).
Set the option Modify tax details for TDS to Yes.
Press Ctrl+A to accept.
Enter the Supplier Invoice No. and Date.
Select the ledger of the supplier in the field Party A/c name.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Select the ledger, created under Purchase Accounts, under Particulars, and enter the Amount.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Press Enter. The Expense Allocation screen appears.
Select the nature of payment applicable for taxable purchase of software product and press Enter.
Select TDS tax ledger under Particulars. The TDS tax amount automatically appears, based on the rate of tax defined in the nature of payment.
Accept the screen. As always, you can press Ctrl+A to save.
Note: In this case, the purchase ledger and TDS ledger are created without selecting a Nature of Payment in the master. The nature of payment is selected during transacting. You can also create ledgers by selecting the respective nature of payment.
Nature of payment for the exempt purchase of software product
Gateway of Tally > Create > type or select TDS Nature of Payments > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > TDS Nature of Payments > and press Enter.
Enter the Name of the nature of payment.
Enter 194J and 94J in the fields Section and Payment Code, respectively.
Set the option Is software royalty to Yes.
Enter the Rate of tax as 0%.
Set the option Is zero rated to Yes.
Enter the amount up to which tax should not be applied for this category in the field Threshold/exemption limit, if any.
Accept the screen. As always, you can press Ctrl+A to save.
Press Ctrl+H (Change Mode) to select the required voucher mode (Accounting Invoice, in this case).
Press F12 (Configure).
Set the option Modify tax details for TDS to Yes.
Press Ctrl+A to accept.
Enter the Supplier Invoice No. and Date.
Select the ledger of the supplier in the field Party A/c name.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Select the ledger, created under Purchase Accounts, under Particulars, and enter the Amount.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Press Enter. The Expense Allocation screen appears.
Select the nature of payment applicable for zero rated purchase of software product and press Enter.
Press Enter.
Accept the screen. As always, you can press Ctrl+A to save.
Select the Party A/c name.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Under Particulars, select the expense ledger and enter the amount.
Select the TDS ledger. The amount appears automatically.
Enter the Bill-wise Details.
Accept the screen. As always, you can press Ctrl+A to save.
Debit Note
To Enable Debit Note Voucher Type
Gateway of Tally > Alter > type or select Voucher Type > Debit Note > and press Enter.
Alternatively, press Alt+G (Go To) > Alter Master > Debit Note > and press Enter.
Set Activate this Voucher Type to Yes.
Accept the screen. As always, you can press Ctrl+A to save.
Enter the Original Invoice No. and Original Invoice Dt.
Select the Party A/c name.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Select the expense ledger and enter the amount.
Select the TDS ledger.
Enter the details in the TDS Details screen.
Enter the details in the Bill-wise Details screen and press Ctrl+A to save.
Accept the screen. As always, you can press Ctrl+A to save.
Credit the party ledger (ensure you have selected Section Number 197 in the party ledger). The amount after TDS deduction will appear in the Amount field automatically.
Enter the Bill-wise Details, as required.
Credit the TDS ledger. The amount will appear automatically.
Accept the screen. As always, you can press Ctrl+A to save.
Deduct Tax at Zero Rate
A Deductee (other than Company or Firm) can submit a declaration in Form 15G under sub section (1) of section 197A, for TDS deduction at Zero Rate. Declarations can be given only by those deductees whose income is below the taxable limit and the income falls under section 193, 194, 194A, 194EE and 194K.
Press Ctrl+H (Change Mode) to select the required voucher mode (Item Invoice, in this case).
Enter the Supplier Invoice No. and Date.
Select the Party A/c name.
Select the Purchase ledger.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Stock Items > press Enter.
Select the stock item enter the Quantity and Rate. The amount appears automatically.
Select the TDS ledger. The amount appears automatically.
Enter the required details in the Bill-wise Details screen and press Ctrl+A to save.
Accept the screen. As always, you can press Ctrl+A to save.
TDS Deduction for Interest Payable
Press F11 (Features) > set Enable Interest Calculation to Yes.
If you do not see this option:
Set Show more features to Yes.
Set Show all features to Yes.
Create a credit note voucher class to enable automatic calculation of interest in the voucher.
Gateway of Tally > Alter > type or select Voucher Type > Credit Note > and press Enter.
Alternatively, press Alt+G (Go To) > Alter Master > Credit Note > and press Enter.
Enter Name of Class and press Enter.
Set the option Use Class for Interest Accounting to Yes.
Create the party master and set the option Activate interest calculation to Yes.
Enter the PAN details, as they are mandatory for TDS transactions.
Set the options Calculate Interest Transaction-by-Transaction and Override Parameters for each Transaction to Yes.
Create the Nature of payment.
Gateway of Tally > Create > type or select TDS Nature of Payments > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > TDS Nature of Payments > and press Enter.
Create TDS ledger and expense ledger. Select the same Nature of payment in both the ledgers.
Gateway of Tally > Create > type or select Ledger > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > Ledger > and press Enter.
Create a receipt or journal voucher to record the payment from the party, or to record the receipt of loan from the party.
Create a credit note using the voucher class that was created to account for the interest payable.
Resolve the exceptions of the credit note transaction in the TDS report.
Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > Form 26Q.
Alternatively, press Alt+G (Go To) > type or select Form 26Q > and press Enter.
The credit note will appear under No link is available in booking and booking with deduction voucher.
Press Alt+L (Link All) to clear the exceptions.
Create a TDS deduction journal voucher. Link the TDS deduction transaction to the credit note using the TDS reference generated while resolving the exception:
The values will be automatically displayed in the voucher.
Accept the voucher to save the details.
Create a payment voucher to record payments made to the party. You can record payments of only the interest amount or both the principal and the interest amount.
Select the bank ledger in the Account field.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Under Particulars, select the party ledger and enter the amount.
Select the TDS ledger. The amount appears automatically.
Enter the Bank Allocation Details, as required.
Accept the screen. As always, you can press Ctrl+A to save.
Debit the fixed asset ledger and enter the amount.
Credit the party ledger and the amount is automatically filled.
Enter the required details in the Bill-wise Details screen.
Credit the TDS ledger. The amount appears automatically.
Accept the screen. As always, you can press Ctrl+A to save.
TDS on Interest Paid Towards Overdue Payments
Activate interest calculation
Press F11 (Features) > set Enable Interest Calculation to Yes.
If you do not see this option:
Set Show more features to Yes.
Set Show all features to Yes.
Accept the screen. As always, you can press Ctrl+A to save.
Define interest parameters in party ledger
Gateway of Tally > Alter > type or select Ledger > and press Enter.
Alternatively, press Alt+G (Go To) > Alter Master > Ledger > select the party ledger and press Enter.
Set the option Activate interest calculation to Yes. The Interest Parameters screen appears.
Set the options in the Interest Parameters screen as shown below:
Press Ctrl+A to accept the interest parameters.
Accept the screen. As always, you can press Ctrl+A to save.
TDS ledger for Interest
Gateway of Tally > Create > type or select Ledger > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > Ledger > and press Enter.
Enter the Name of the ledger.
Select Duties & Taxes group in the field Under.
Select TDS in the field Type of duty/tax.
Select Interest Other Than Interest on Securities in the field Nature of payment.
Set the option Inventory values are affected to No.
Set the option Activate interest calculation to No.
Accept the screen. As always, you can press Ctrl+A to save.
Expense ledger for interest amount
Gateway of Tally > Create > type or select Ledger > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > Ledger > and press Enter.
Enter the Name of the ledger.
Select Indirect Expenses group in the field Under.
Set the option Inventory values are affected to No.
Set the option Activate interest calculation to No.
Set the option Is TDS applicable to Yes.
Select Interest Other Than Interest on Securities in the field Nature of payment.
Accept the screen. As always, you can press Ctrl+A to save.
Provide the Bill-wise Details and press Ctrl+A to save. The Interest Parameters screen appears.
Accept the parameters in the Interest Parameters screen OR change them if required.
Press Ctrl+A to save.
Select TDS ledger. The amount appears automatically.
Accept the screen. As always, you can press Ctrl+A to save.
Voucher class for credit note
You can create voucher class in credit note to account for the interest payable to the party.
Gateway of Tally > Alter > type or select Voucher Type > Credit Note > and press Enter.
Alternatively, press Alt+G (Go To) > Alter Master > Credit Note > and press Enter.
Specify the Name of Class and press Enter to view the Voucher Type Class screen.
Set the option Use Class for Interest Accounting to Yes.
Press Enter to return to the Voucher Type Alteration screen.
Accept the screen. As always, you can press Ctrl+A to save.
Press F2 (Date) and set the date to day on which the interest amount becomes due.
Select party to whom interest has to be paid. The Interest Details screen appears.
Select required bills.
Press Enter to return to the voucher screen.
Press Enter from the Credit field. The credit amount appears automatically.
Select New Ref as the Method of Adjustment in the Bill-wise Details screen.
Enter a Name > skip Due Date, or Credit Days fields > press Ctrl+A to save.
In the Interest Parameters screen, set zero in the Rate field.
Accept the screen. As always, you can press Ctrl+A to save.
Debit the interest payable ledger. The amount appears automatically.
Accept the screen. As always, you can press Ctrl+A to save.
Deduct TDS on the interest payable
Resolve the exception and generation TDS reference
Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > Form 26Q.
Alternatively, press Alt+G (Go To) > type or select Form 26Q > and press Enter.
Select the bank ledger in the Account field.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Under Particulars, select the party ledger.
Enter the bill amount plus the interest in the Amount field and press Enter. The Bill-wise Details screen appears.
Select the references of the bill amount and the interest amount.
Press Ctrl+A to save.
Accept the screen. As always, you can press Ctrl+A to save.
Note: Select interest amount alone if only interest is paid to the party.
TDS on Interest Paid on Loans Taken from Parties
Activate interest calculation
Press F11 (Features) > set Enable Interest Calculation to Yes.
If you do not see this option:
Set Show more features to Yes.
Set Show all features to Yes.
Accept the screen. As always, you can press Ctrl+A to save.
Interest calculation in party master
Gateway of Tally > Alter > type or select Ledger > and press Enter.
Alternatively, press Alt+G (Go To) > Alter Master > Ledger > select the party ledger and press Enter.
Set the option Activate interest calculation to Yes. The Interest Parameters screen appears.
Set the options in the Interest Parameters screen as shown below:
Press Ctrl+A to accept the interest parameters.
Accept the screen. As always, you can press Ctrl+A to save.
Select the bank ledger in the Account field.
As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
Under Particulars select the party ledger.
Enter the bill amount plus interest in the Amount field and press Enter. The Bill-wise Details screen appears.
Select the references of the bill amount and interest amount.
Press Ctrl+A to save.
Accept the screen. As always, you can press Ctrl+A to save.
Note: Select interest amount alone if only interest is paid to the party.
TDS on Transport
Note: A TDS of 20% is applicable for parties without a valid PAN.
Expenses with TDS – Transport in more than 10 goods carriage
Credit the party ledger. The amount appears automatically.
Enter the required details in the Bill-wise Details screen, and press Ctrl+A to save.
Accept the screen. As always, you can press Ctrl+A to save.
TDS at Normal or Lower Rate as per Rule 37BC
You can apply normal or lesser TDS rate in transactions using the respective nature of payment.
Gateway of Tally > Create > type or select TDS Nature of Payments > and press Enter.
Alternatively, press Alt+G (Go To) > Create Master > TDS Nature of Payments > and press Enter.
Press F12 (Configure).
Enable the option Allow relaxation in rate for Non-Residents.
Press Ctrl+A to accept and return to TDS Nature of Payment screen.
Enter the Name for TDS nature of payment.
Enter Section and Payment code for the nature of payment as per TDS schedules.
Set the option Relaxation in rate for Non-Residents (as per Rule 37BC) to Yes.
Enter the TDS Rate.
Enter the Threshold/exemption limit, if any.
Accept the screen. As always, you can press Ctrl+A to save.
The journal voucher with TDS at default higher rate is shown below:
Enter thePeriod FromandTodates. Provide the relevant details in the Statutory Payment screen.
Select either bank or cash ledger in theCash/Bankfield. The payment voucher will be automatically filled with the relevant values. The Statutory Payment Details screen appears as shown below:
Press Enter.
Enter the Bank Allocation details as required.
Accept the screen. As always, you can press Ctrl+A to save.
Scenario 2: On 05-05-2015, XYZ Company paid the TDS deducted to the government on behalf of ABC Company.
Select the TDS tax ledgers, and the relevant nature of payments/nature of goods.
Select the Late Fee ledger grouped under Indirect Expenses.
Select Late Fee from the list of payment types.
Enter the amount. The late payment voucher will appear as shown below:
Accept the screen. As always, you can press Ctrl+A to save.
Generate TDS Reports in TallyPrime
View the party ledger for which PAN is not specified and enter the PAN
Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > Ledgers without PAN.
Alternatively, press Alt+G (Go To) > type or select TDS Reports > Ledgers without PAN > and press Enter.
Based on the availability of PAN for the party ledger, enter the PAN as shown below:
Accept the screen. As always, you can press Ctrl+A to save and return to the TDS Return menu.
View the ledgers for which PAN is specified but needs to be corrected
Press Enter on Ledgers without PAN in the TDS Reports menu.
Press F8 (All Ledgers) to view the list of ledgers for which PAN is defined.
Select the PAN/IT No. that needs to be corrected.
Modify the PAN/IT No., as required.
Accept the screen. As always, you can press Ctrl+A to save. The corrected PAN gets updated in the party ledger master.
Report description
A brief explanation on the fields and columns provided in this report is given below:
Field/Column Name
Description
No. of Deductees
Displays the total count of party ledgers configured for TDS deduction (the option Is TDS Deductable is set to Yes in party ledger). This field appears when you press F8 (All Ledgers) in the Ledgers without PAN report.
PAN Empty
Displays the percentage of party masters for whom PAN is not defined. This field appears when you press F8 (All Ledgers) in the Ledgers without PAN report.
Supplier Ledger Name
Displays the Name of the party ledger configured for TDS deduction.
Deductee Type
Displays the Deductee type selected in the party ledger.
Contact Person
Displays the name of the Contact person entered in the party ledger.
Contact Number
Displays the Phone no. entered in the party ledger.
PAN/IT No.
Displays the PAN/IT No. entered in the party ledger.
TDS Outstanding Report
View TDS Outstanding report
Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > TDS Outstandings.
Alternatively, press Alt+G (Go To) > type or select TDS Reports > TDS Outstandings> and press Enter.
A brief explanation about the fields in the report is given below:
Field Name
Description
Nature of Payment
Displays the name of the TDS Nature of Payment as specified in the duty ledger which was used in recording the TDS booking with deduction or TDS deduction entry.
Company
Displays the total amount of outstanding for all parties of Company-resident deductee type used in recording the TDS booking with deduction or TDS deduction entry.
Non Company
Displays the total amount of outstanding for all parties of Individual/HUF-resident deductee type used while recording the TDS booking with deduction or TDS deduction entry.
Total Pending
Displays the total outstanding amount of all TDS payment from all parties.
View section code, payment code and pending payment payable details of non-resident, resident, or both
Press F12 (Configure) in the TDS Nature of Payment Outstandings report.
Set the options Show Section Code and Show Payment Code to Yes. Select the required resident type.
Accept the screen. As always, you can press Ctrl+A to save.
By default the report appears category-wise, you can change it to party-wise by pressing F5 (Party-wise).
View the party-wise TDS details
Press F5 (Party-wise) to view the party-wise details.
View the transaction details for each nature of payment
Select the required Nature of Payment and press Enter. The TDS Nature of Payment Outstandings report for the selected nature of payment appears.
Ctrl+B (Basis of Values) In TDS Nature of Payment Outstandings, you can display the Range of Bills Type in reports. Press Ctrl+B (Basis of Values) > Range of Bills Type > select All Bills. Press Esc to view the default values. Similarly, you can select different Range of Bills Type to display and compare the effect on your report values. Press Ctrl+B (Basis of Values) > Range of Bills Type > select Overdue Bills, or Pending Bills, as needed. Press Esc to view the default values.
Press F12 (Configure) to change the display of report in terms of the following options:
Format of Report
Sorting Method
A brief explanation about the report fields is given below:
Field Name
Description
Date
Displays the date of recording payment, journal or purchase voucher.
Ref. No.
Displays the reference number entered in the payment, journal or purchase voucher.
Party’s Name
Displays the party name from where TDS is deducted and the payment for the same are yet to be made.
Opening Amount
Displays the opening amount of TDS.
Pending Amount
Displays the pending amount of payment to be made to the government.
Due On
Displays the last date of payment.
Overdue By Days
Displays the number of days passed after the due date.
TDS Reconciliation Report
The TDS Reconciliation report displays the all the reconciled TDS payments.
Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > Challan Reconciliation.
Alternatively, press Alt+G (Go To) > type or select TDS Reports > Challan Reconciliation> and press Enter.
Press F8 (Show All) to show all or pending challan.
Ctrl+B (Basis of Values) In TDS Challan Reconciliation, you can display the List of Configurations in reports. Press Ctrl+B (Basis of Values) > Show All Challan Types to Yes. Press Esc to view the default values.
Press Alt+R (Reconcile).
Column Names
Description
Date
Displays the payment voucher date.
Particulars
Displays the duty ledger selected in the voucher.
E-TDS Quarter Period
Displays the From and To dates entered at the Statutory Payment Details screen. If TDS duty payment is recorded manually, the quarterly period has to be entered manually here.
Section No.
Displays the section number of the TDS Nature of Payments entered at the Statutory Payment Details screen of the TDS duty payment entry.
Deductee Type
Displays the Deductee Status Type entered at the Statutory Payment Details screen of the TDS duty payment entry.
Resident Type
Displays the Residential Status entered at the Statutory Payment Details screen of the TDS duty payment entry.
Cheque/DD No.
Displays the cheque or DD number which were entered manually at the time or reconciliation.
Cheque/DD Date.
Displays the cheque or DD date which were entered manually at the time or reconciliation.
BSR Code
Displays the BSR Code of the bank which was entered manually at the time or reconciliation.
Challan No.
Displays the challan number provided by the bank which was entered manually at the time of reconciliation.
Challan Date
Displays the challan date provided by the bank which was entered manually at the time of reconciliation.
Vch No.
Displays the payment voucher number.
Amount
Displays the amount paid recorded in the TDS payment voucher.
View the party ledger for which PAN is not specified and enter the PAN
Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > Ledgers without PAN.
Alternatively, press Alt+G (Go To) > type or select TDS Reports > Ledgers without PAN > and press Enter.
Based on the availability of PAN for the party ledger, enter the PAN as shown below:
Accept the screen. As always, you can press Ctrl+A to save and return to the TDS Return menu.
View the ledgers for which PAN is specified but needs to be corrected
Press Enter on Ledgers without PAN in the TDS Reports menu.
Press F8 (All Ledgers) to view the list of ledgers for which PAN is defined.
Select the PAN/IT No. that needs to be corrected.
Modify the PAN/IT No., as required.
Accept the screen. As always, you can press Ctrl+A to save. The corrected PAN gets updated in the party ledger master.
Report description
A brief explanation on the fields and columns provided in this report is given below:
Field/Column Name
Description
No. of Deductees
Displays the total count of party ledgers configured for TDS deduction (the option Is TDS Deductable is set to Yes in party ledger). This field appears when you press F8 (All Ledgers) in the Ledgers without PAN report.
PAN Empty
Displays the percentage of party masters for whom PAN is not defined. This field appears when you press F8 (All Ledgers) in the Ledgers without PAN report.
Supplier Ledger Name
Displays the Name of the party ledger configured for TDS deduction.
Deductee Type
Displays the Deductee type selected in the party ledger.
Contact Person
Displays the name of the Contact person entered in the party ledger.
Contact Number
Displays the Phone no. entered in the party ledger.
PAN/IT No.
Displays the PAN/IT No. entered in the party ledger.
TDS Outstanding Report
View TDS Outstanding report
Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > TDS Outstandings.
Alternatively, press Alt+G (Go To) > type or select TDS Reports > TDS Outstandings> and press Enter.
A brief explanation about the fields in the report is given below:
Field Name
Description
Nature of Payment
Displays the name of the TDS Nature of Payment as specified in the duty ledger which was used in recording the TDS booking with deduction or TDS deduction entry.
Company
Displays the total amount of outstanding for all parties of Company-resident deductee type used in recording the TDS booking with deduction or TDS deduction entry.
Non Company
Displays the total amount of outstanding for all parties of Individual/HUF-resident deductee type used while recording the TDS booking with deduction or TDS deduction entry.
Total Pending
Displays the total outstanding amount of all TDS payment from all parties.
View section code, payment code and pending payment payable details of non-resident, resident, or both
Press F12 (Configure) in the TDS Nature of Payment Outstandings report.
Set the options Show Section Code and Show Payment Code to Yes. Select the required resident type.
Accept the screen. As always, you can press Ctrl+A to save.
View the party-wise TDS details
Press F5 (Party-wise) to view the party-wise details.
View the transaction details for each nature of payment
Select the required Nature of Payment and press Enter. The TDS Nature of Payment Outstandings report for the selected nature of payment appears.
Ctrl+B (Basis of Values) In TDS Nature of Payment Outstandings, you can display the Range of Bills Type in reports. Press Ctrl+B (Basis of Values) > Range of Bills Type > select All Bills. Press Esc to view the default values. Similarly, you can select different Range of Bills Type to display and compare the effect on your report values. Press Ctrl+B (Basis of Values) > Range of Bills Type > select Overdue Bills, or Pending Bills, as needed. Press Esc to view the default values.
Press F12 (Configure) to change the display of report in terms of the following options:
Format of Report
Sorting Method
A brief explanation about the report fields is given below:
Field Name
Description
Date
Displays the date of recording payment, journal or purchase voucher.
Ref. No.
Displays the reference number entered in the payment, journal or purchase voucher.
Party’s Name
Displays the party name from where TDS is deducted and the payment for the same are yet to be made.
Opening Amount
Displays the opening amount of TDS.
Pending Amount
Displays the pending amount of payment to be made to the government.
Due On
Displays the last date of payment.
Overdue By Days
Displays the number of days passed after the due date.
Tax Deducted at Source TDS Reconciliation Report
The TDS Reconciliation report displays the all the reconciled TDS payments.
Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > Challan Reconciliation.
Alternatively, press Alt+G (Go To) > type or select TDS Reports > Challan Reconciliation> and press Enter.
Press F8 (Show All) to show all or pending challan.
Ctrl+B (Basis of Values) In TDS Challan Reconciliation, you can display the List of Configurations in reports. Press Ctrl+B (Basis of Values) > Show All Challan Types to Yes. Press Esc to view the default values.
Press Alt+R (Reconcile).
Column Names
Description
Date
Displays the payment voucher date.
Particulars
Displays the duty ledger selected in the voucher.
E-TDS Quarter Period
Displays the From and To dates entered at the Statutory Payment Details screen. If TDS duty payment is recorded manually, the quarterly period has to be entered manually here.
Section No.
Displays the section number of the TDS Nature of Payments entered at the Statutory Payment Details screen of the TDS duty payment entry.
Deductee Type
Displays the Deductee Status Type entered at the Statutory Payment Details screen of the TDS duty payment entry.
Resident Type
Displays the Residential Status entered at the Statutory Payment Details screen of the TDS duty payment entry.
Cheque/DD No.
Displays the cheque or DD number which were entered manually at the time or reconciliation.
Cheque/DD Date.
Displays the cheque or DD date which were entered manually at the time or reconciliation.
BSR Code
Displays the BSR Code of the bank which was entered manually at the time or reconciliation.
Challan No.
Displays the challan number provided by the bank which was entered manually at the time of reconciliation.
Challan Date
Displays the challan date provided by the bank which was entered manually at the time of reconciliation.
Vch No.
Displays the payment voucher number.
Amount
Displays the amount paid recorded in the TDS payment voucher.
View Form 27Q
Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > Form 27Q.
Alternatively, press Alt+G (Go To) > type or select Form27Q > and press Enter.
Statistics of Vouchers displays the total number of transactions pertaining to a period which are categorised as Included in return, Not Relevant in this Return and Uncertain Transactions (Corrections needed). The drill-down report of Total Vouchers displays the Statistics report comprising of voucher types with the corresponding voucher count.
Included in return Details
Select Included in return, and press Enter. The Included in return details screen appears.
Booking Voucher: Displays the count of booking voucher that are recorded without TDS deduction to book the expenses.
Booking with Deduction Voucher: Displays the count of booking voucher that are recorded with TDS deduction details.
Deduction Voucher: Displays the count of all the deduction entries passed during the report period.
Advance Payment to Party (with Deduction): Displays the count of all the advance payments made to the party against the service that will be availed in the future.
Reversal: Displays the count of all the entries recorded for TDS reversal.
Overridden by User: Displays the count the TDS vouchers that were recorded and saved by overwriting the pre-defined tax details.
Not Relevant in this Return
Displays the count of all vouchers which are not a part of returns.
Select Not Relevant in this Return.
Press Enter.
Select the category or voucher type as applicable.
Press Enter. The Voucher Register screen will display the list of excluded vouchers for the selected voucher type.
Select the transaction and press Enter to view it in alteration mode.
Uncertain Transactions (Corrections needed)
View Uncertain Transactions
Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > Form 27Q.
Alternatively, press Alt+G (Go To) > type or select Form27Q > and press Enter.
Master Related Exceptions
Expenses/Purchase Master
Unable to determine TDS applicability for ledgers or stock items: This exception occurs when the expense/purchase ledger that has been debited in a transaction, has not been enabled for Tax Deducted at Source. Also, the expense ledger has not been tagged to a specific expense category for TDS. Select a nature of payment to resolve this exception. To set the nature of payment:
Press Spacebar to select a group.
Press F5 (Ledger-wise) to view Ledger wise report.
Press F8 (Show Vouchers).
Press Alt+B (Nature of Payment).
Select a TDS Nature of Payment.
Press Ctrl+H (Change View)
You can display the details of a report in different views with additional details or for a specific period. You can also view other reports related to the current report.
To view the Stock Item-wise press Ctrl+H (Change View) > type or select Stock Item-wise> press Enter. Press Esc to view the default report.
Party Master
Unable to determine the deductee type for party: This exception occurs when the deductee type of the party ledger is set to undefined. Select a deductee type to resolve this exception. To set the deductee type:
Press Enter on Unable to determine deductee type for party.
Press Spacebar to select the Name of the Ledger.
Press Ctrl+F4 (Deductee Type).
Select the required Deductee Type.
PAN not available for party: This exception occurs when the party ledger selected has been enabled for Tax Deducted at Source but PAN has not been specified. Specify the PAN, and the applicability of PAN or the status of PAN application for the party. To enter PAN Details:
Press Enter on PAN not available for the Party.
Enter the PAN of the party and applicability, if PAN is available.
Alternatively
Press Enter in the PAN No. field to go to the field PAN Status.
Select the applicable PAN Status.
Duty Master
Unable to determine Tax Deducted at Source applicability for duty ledgers: This exception occurs when the TDS duty ledger has not been classified under a Tax Deducted at Source Category. Select a specific Tax Deducted at Source Nature of Payment of Tax Deducted at Source duty ledger to resolve this exception. To select the Nature of Payment:
Press Enter on Unable to determine Tax Deducted at Source applicability of ledgers.
Select the Default Nature of Goods.
Nature of Payment
Unable to determine the tax rate for nature of payment: This exception occurs when the tax rate for the nature of payment has not been specified. Provide tax rate for the nature of payment to resolve this exception. To provide the tax rate:
Press Enter on Unable to Determine the Tax Rate for Nature of Payment.
Select Yes in the column Is Zero Rated, if required. Else, specify the rate of duty in the column Rate.
Press Enter.
Transaction Related Exceptions
Mismatch in Nature of Payment
Unable to determine the nature of payment in transaction: This exception occurs when the nature of payment in transaction has not been specified. Provide the nature of payment to resolve this exception. To select the nature of payment:
Press Enter on Unable to determine the nature of payment in transaction.
Select the required transaction, press Enter.
Select the nature of payment, or create the required nature of payment.
Press Enter.
Accept the screen. As always, you can press Ctrl+A to save.
Booking & Booking with Deduction Entries
No link is available in booking and booking with deduction voucher: This exception occurs when the Tax Deducted at Source category set for the purchase/expense ledger is not the same as the Tax Deducted at Source category selected during voucher entry. Set the appropriate nature of payment to resolve this exception. To resolve the exception:
Press Enter on No link is available with collection voucher.
Select the transaction and press Alt+L (Link All).
Note: If the Tax Deducted at Source Category for the ledger is set to Any and a Tax Deducted at Source Category is specified during voucher entry, this exception will not arise.
Unable to determine deductee details in cash transactions: This exception occurs in transactions where Cash has been selected in the field Party A/C name, but deductee details are not available. Select the appropriate party ledger to resolve this exception. To select the party ledger:
Press Enter on Unable to determine deductee details in cash transactions.
Select the Deductee Type and enter the PAN, if the details are not available in the ledger master.
Press Enter.
Accept the screen. As always, you can press Ctrl+A to save.
Deduction Entries
Tax Deducted at Source deducted but not linked with expense/purchase transaction and Expenses/purchase returns not linked with expense/purchase transaction. These exceptions occurs when:
The deduction entry has not been linked to a booking entry.
Press Enter on Tax Deducted at Source deducted but not linked with expense/purchase transaction.
Press Enter on the required entry.
Press Spacebar to select the required booking vouchers.
Press Alt+R (Auto Fill) or Alt+L (Full) or Alt+V (Partial), as required.
Press Enter.
Advance payment is done via third party.
Press Enter on Tax Deducted at Source deducted but not linked with expense/purchase transaction.
Press Enter on the required entry.
Press Alt+S (Direct Mapping).
Select Advance Payment.
Overridden Entries
Transactions accepted with conflicts: This exception occurs when the transactions recorded have conflicts or mismatches. Resolve the conflict to resolve the exception. To resolve this conflict:
Press Enter on the entry which has conflicts.
Press Spacebar on the entry.
Press Alt+J (Accept as is).
Press Enter to accept the voucher as is.
Payment Details – Not Included Transactions
Unable to determine Tax Deducted at Source applicability for duty ledgers: This exception occurs when the Type of duty/tax of Tax Deducted at Source ledger is set to Others, and the option Is Tax Deducted at Source applicable is set to Not Applicable. Select the nature of payment to resolve this exception. To resolve this exception:
Press Enter on Unable to determine Tax Deducted at Source applicability for duty ledgers.
Press Spacebar to view the list of natures of payment.
Select the required nature of payment.
Accept the screen. As always, you can press Ctrl+A to save.
Bank Details are not available in Payment Voucher: This exception occurs when the bank details are not provided while record the Tax Deducted at Source statutory payment voucher. Enter the payment details to resolve this exception. To resolve this exception:
Press Enter on Bank Details are not available in Payment Voucher.
Enter all the details.
To set the challan details for all the transactions in one-go, press Alt+S (Update Details), and enter the relevant details.
Press Enter to save the Challan Details.
Press Ctrl+A to save the Tax Deducted at Source Challan Reconciliation screen.
Paid but not linked with Tax Deducted at Source deduction Vouchers: This exception occurs when the Tax Deducted at Source payment voucher is recorded without linking to the Tax Deducted at Source booking voucher (purchase or journal voucher). To resolve this exception:
Press Enter on Paid but not linked with Tax Deducted at Source deduction Vouchers.
Press Ctrl+Enter on the transaction to view the voucher and make the changes as needed.
Accept the screen. As always, you can press Ctrl+A to save.
Not able to determine the Type of Payment: This exception occurs when the Tax Deducted at Source payment voucher is recorded without using stat payment feature. To resolve this exception:
Press Enter on Not able to determine the Type of Payment.
Press Spacebar to select the transaction and correct it.
Tax Deducted at Source Deduction Details
The Deduction Details section denotes the type of deduction under which each of the Included transaction is grouped. Select the required deduction under Deduction Details, and press Enter.
To view the PAN number of each deductee:
Press F12 (Configure).
Set the option Show PAN Number to Yes. The Deduction Details screen with PAN numbers appears as shown below:
Tax Deducted at Source Tax Deducted at Source Payment Details
Select the nature of payment under Particulars and press Enter, to view the Payment Voucher screen.
Select the required voucher and press Enter to view all the deduction vouchers recorded for the selected party.
Save, Recompute, Overwrite Form 27Q
To save Form 27Q, you need to save the Form 27Q Return, recompute the corrected return, overwrite the corrected report, save the recomputed valued as revised return, and export Form 27Q.
Save the return
Press Alt+B (Save Return). If the count of Uncertain Transactions count is not zero, a message appears as shown below:
Click Yes to save Form 27Q without solving exceptions.
Click No to solve the exceptions first and then save.
If the count of Uncertain Transactions is zero, a message appears as shown below:
Click Yes to save the return.
Note: If any master or transaction is modified or added after saving the return, the values can be recomputed. The recomputed information can be overwritten on the Form 27Q saved earlier or saved as a revised return.
Recompute Corrected Return
Generate Form VAT 27Q report for the period for which the return was saved.
For example, if the return was saved for the period 1-Apr-2020 to 30-Apr-2020, view the report for the same period.
The message The return values might have been changed, press Alt+W to recompute appears with a new section comprising details of:
Modified Masters: Displays the count of purchase and sales ledgers in which tax rates have been modified. Press Enter on Modified Masters to view the details.
Modified Vouchers: Displays the total count of vouchers which are Created, Altered, Cancelled and Deleted. To view the list of transactions captured against each modification type, press Enter on Created, Altered, Cancelled or Deleted vouchers row in which transaction count is displayed.
Press Enter to display the voucher alteration screen.
To include the changes made into the report and recalculate the values, click Alt+W (Recompute). Once the values are recomputed, the section displayed for modified masters and transactions will not appear.
Overwrite the recomputed information
On recomputing the values of modified transactions, Form 27Q report displays two buttons, Alt+B (Overwrite) and Alt+H (Save as Revised).
Press Alt+B (Overwrite).
If the count of Uncertain Transactions count is not zero, a message appears as shown below:
Click Yes to overwrite without solving exceptions.
Click No to solve the exceptions.
If the count of Uncertain Transactions is zero, a message appears as shown below:
Click Yes to accept and overwrite the data with modified details.
Save as Revised
To save the recomputed valued as revised return without overwriting the information, press Alt+H (Save as Revised).
Press Alt+H (Save as Revised).
If the count of Uncertain Transactions is not zero, a message appears as shown below:
Click Yes to save the data without solving exceptions.
Click No to solve the exceptions first and then save as revised return.
If the count of Uncertain Transactions is zero, a message appears as shown below:
Click Yes to save the data as revised return.
Export Form 27Q
You can export the Form 27Q in text format.
Press Alt+B (Save Return) in Form 27Q report, to save the return (Form 27Q can be exported only after it is saved). The report closes on saving. Open Form 27Q again.
Press Alt+E (Export) and select E-Return to view the Export Report screen.
By default, File Format is SDF (Fixed Width) respectively.
In Folder path field enter or select the path to where the txt file to be exported.
By default, File Name as Tally.txt which can be changed by the users.
Enter the Date.
Specify the required option in Is Regular Return filed for previous period.
Enter the Receipt No. /Token No.
Press Enter to export data. The data is exported to the e-return template.