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 .

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 .

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

1. Enter the deductee tax details in journal voucher.

2. Enter the deductee tax details in payment voucher.

3. Enter the tax payment details.

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

. 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 .

2. Enter the advance details in payment voucher.

3. Enter the advance details in journal voucher

Reports

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

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.

Tax Deducted at Source

Section	Nature of Payment	Threshold Rs	Indv / HUF TDS		Others TDS
Section	Nature of Payment	Threshold Rs	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)