Anup singh
In the previous post, we saw ‘How to create TDS Nature of Payment and TDS Ledgers?‘, now we will see how to record TDS entry in Tally?
How to Record TDS Entry in Tally?
Record TDS on Purchases
For example we want to purchase software for our office use so let’s see steps to record entry:
1. First Create ‘TDS Nature of Payment’
From the gateway of the tally press ‘C’ then select ‘TDS Nature of Payment’ under the ‘Statutory Master’
OR
Press ‘ALT’+G’ select ‘Create Master’ then select ‘TDS Nature of Payment’ under the ‘Statutory Master’
After that Enter the Name of the nature of payment as ‘Payment on Acquisition of Software’
Enter 194J and 94J in the fields Section and Payment Code, respectively and enter the details as applicable.
Learn How To Activate GST Details in TallyPrime?
After learning about “How To Create Stock Groups and Stock Items?” now we will see “how to Activate GST details in Tally?” In TallyPrime at the time of creating a company then you need to set the GST details but in case you missed setting GST details there are many ways you can set up the GST details, so let’s start. Set GST Details from “Go To” From the gateway of TallyPrime press “Alt + G” or select “Go To” from the top of the screen. Select “Alter Master” after that Master Alteration screen will appear in that type “GST”…
Rate Applicable with PAN 10% Without PAN 20%
Press ‘CTRL +A’ to save it
Note: This is an example only for understanding purpose actual rate and section in TDS may vary case to case.
2. Enable TDS Applicable in Purchases Account
To do that from the gateway of the tally press ‘A’ or select ‘Alter’ after that select ‘Ledger’ now select ‘Purchases’ ledger.
In ‘Statutory Details’ – Is TDS applicable select it to ‘Applicable’
After that select the ‘Nature of Payment’ – ‘Payment on Acquisition of software’ as above we created. Enter the date applicable from.
Press ‘CTRL + A’ to save it.
3. Create Party Account (from where Software to be purchase)
From the gateway of tally press ‘C’ and select the ‘Ledger’ press enter.
Name: Microsoft
Under: Sundry Creditors
Is TDS applicable: ”YES”
Deductee type: Company Resident
Enter the PAN details: HGXP2578J ( Note: If PAN details are furnished then TDS applicable 10% else 20%)
Press ‘CTRL +A’ to save it.
How to Convert 26AS Text File into Excel File?
You can view 26AS from the TRACES portal or via the e-filing portal, It can be viewed in HTML format (online) and can be downloaded in two formats i.e. 1. PDF, 2. Text. In the case where transactions are 2000 or more, then 26AS would be available in text file only. The deductee has to place the download request. The following steps need to be followed: 1. Visit the TRACES portal and popup will come click on continue. Click on login under the login section. Select the Taxpayer/PAO, enter the User ID, Password, and PAN for Tax Payer / AIN…
4. Create TDS Ledger
From the gateway of tally press ‘C’ select the ‘Ledger’ and press enter
Enter/ Select the following details:
Name: TDS
Under: Duties and Taxes
Type of duty/tax: TDS
Nature of Payment: Payment on Acquisition of software
Press ‘CTRL + A’ to save it.
5. Let’s Record TDS Entry
From the gateway of tally press ‘V’ press ‘F9’ to enable purchase voucher.
After that press ‘CTRL + H’ to change the mode to ‘Accounting Invoice’
Enter/ Select the following details:
Press ‘F2′ to change the date ’02-06-2020’
Supplier Invoice No.: 1/MH-SF
Party A/c name: ‘Microsoft’
Particulars: ‘Purchases’ enter the amount ‘100000’.
Select the SGST and CGST ledger amount will be auto calculated.
Note: Learn to create GST ledger visit this link: ‘How to create GST Ledger?’
Select the TDS ledger as above we created amount will be auto calculated
Press ‘CTRL + I’ or select ‘More Details’ and select ‘TDS-Tax Analysis’ to check the TDS calculation details.
Press ‘CTRL + A’ to save it.
FAQs
What is TDS?
Tax is deducted at the origin of the income if payment exceeds a certain threshold limit. For example, you are a salaried person and your income threshold limit exceeds then the employer will deduct TDS and deposit it to the government on behalf of you.
Can I Automate TDS calculation in TallyPrime?
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