How to Create TDS Nature of Payment: In the previous post we saw “How to enable TDS in TallyPrime?”, now we will see how to create Tax Deducted at Source (TDS) nature of payment & TDS Ledger.
How to Create TDS Nature of Payment & TDS Ledger in Tally Prime?
From the gateway of Tally press “C” then select “Tax Deducted at Source Nature of Payments” under the Statutory Masters and press Enter.
OR
Press “ALT + G” select Create Master press Enter and select “TDS Nature of Payment” under the Statutory Masters and hit the enter button
After that Press “F12” [ Configure]
1. 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.
2. Set Allow tax rate without PAN to Yes, to enter the tax rates for Individuals/HUF for each nature of payment.
Press Enter or “CTRL + A” to save it.
Press Alt+H (Helper) to view the list of Nature of Payment
Note: This list will be visible in only license version and this image is taken from Tallysolutions website.
So we need to create Tax Deducted at Source Nature of payment manually. From the Tax Deducted at Source Nature of Payment Creation screen type:
In name: Fees for Professional or Technical Services
create multiple ledgers in Tally
Section: 194J
Payment Code: 94J
Rate for Individuals/HUF: With PAN 10% ( This is an example actual Tax Deducted at Source rate may be different)
Enter the Threshold/exemption limit as applicable
Press “CTRL + A” to save it.
Create Tax Deducted at Source Ledger
To create Tax Deducted at Source Ledger, from the Gateway of Tally press “C” select ledger and hit the enter button.
Enter the name of ledger: Tax Deducted at Source on Professional or Technical Services
Select Duties and Taxes as the group name in the Under field
Select TDS as the Type of duty/tax. After that select the “Nature of Payment” as above we created.
Press “CTRL + A” to save it.
In the next post we will learn ‘How to record Tax Deducted at Source entries in TallyPrime?’
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