Tax Deduct at Source (TDS)
Procedure for TDS in Tally ERP 9:
In Tally ERP 9, We can make account for expenses to imply TDS with the help of Payment Voucher, Journal Voucher or Purchase Voucher, as required. TDS is very easy in Tally, for that TDS takes one time configuration in Tally ERP 9.
Let us Understand through example:
Entry of any bill with TDS
Example : I receive bill from my C.A., bill amount is Rs. 50,000.
First Step: Create Party Ledger
Enable TDS Deduction ? - YES
Pan Card is also mandatory otherwise deduction of TDS is 20%.
Second Step: Consulting Fees or else Service we get create its account.
Set / alter Statutory Details : TDS Deductable : YES and also select Nature of Payment : Fees for technical or Professional Services
Third Step: Create TDS Ledger
Under: Duties & Taxes
Type of duty: TDS
Nature of Payment: Fees for technical or Professional Services.
Now make entry of TDS. When you select tds it will automatically count in any account.
Consulting Fees DR. 50,000/-
Party Ledger CR 45,000/-
TDS Ledger CR 50
Payment of TDS:
After making an entry of TDS, Its time to make payment.
Step 1: Go to Payment voucher and press Alt + S. you will get Statutory Payment Details. you have to select or fill information of TDS, Period, Deducted till date etc.
TDS Ledger DR 5000/-
Bank Ledger CR 5000/-
After Complete Payment entry of TDS, A challan is required which we have to submit it to the bank. so take a print by Alt + P and take copy and submited it to designated branch.
Take a note that we have to deposite chanllan of TDS Payment in government account through any designated branches of the authorised banks, along with Income Tax Challan No.281.