18 Tax Deducted at Source - ERP, Accounting Software & Audit tool

Tax Deducted at Source in Tally.ERP 9

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Version: Tax Deducted at Source in Tally.ERP 9/eLearning/1.0/June 2012

Contents

Tax Deducted at Source in Tally.ERP 9 ...................................................................................... 1

Configuring TDS in Tally.ERP 9 ........................................................................................................... 2Enabling TDS in Tally.ERP 9 ........................................................................................................................... 2

TDS Statutory Masters ..................................................................................................................................... 3

Recording Transactions ......................................................................................................................... 5Booking Expenses and Deducting TDS ............................................................................................................ 5

Booking Expenses and Deducting TDS Later ................................................................................................ 12

TDS Deduction at Lower Rate ........................................................................................................................ 19

TDS Deduction at Zero Rate .......................................................................................................................... 23

Deducting TDS on Payments .......................................................................................................................... 29

Payment of TDS .............................................................................................................................................. 32

TDS Reports ......................................................................................................................................... 40Computation ................................................................................................................................................... 41

Challan Reconciliation ................................................................................................................................... 46

Return ............................................................................................................................................................. 48

eTDS Returns .................................................................................................................................................. 61

Outstandings ................................................................................................................................................... 66

Exception Reports ........................................................................................................................................... 73

i


Tax deducted at source is one of the modes of collecting Income Tax from the assesses. In simple terms, TDS is the tax deducted from the third parties (deductee) by the payer (deductor) and deposited into the designated banks within the specified period. The Assessee who deducts tax at source is liable to issue a certificate to the deductee for the amount deducted alongwith payment details, so that the same can be submitted to Income Tax authorities.

Features of TDS compliant Tally.ERP 9 Simple, quick & User friendly.

Maintains complete tracking of each transaction.

Allows deduction of TDS at the time of booking expenses in the same voucher or separately at a later date.

Allows deduction of TDS at Lower / Zero Rate and deduction of TDS on multiple expenses of single nature of payment type in a single voucher.

Allows computation of TDS on expenses partly subject to tax and on advance payments.

Provides facility to compute TDS with / without considering Surcharge Exemption Limits for parties.

Provides retrospective surcharge calculations for prior / current period.

Allows partial / full payment of Tax deducted at source.

Provides automatic computation of TDS amount for each nature of payment.

Generates TDS Certificates, TDS Outstanding report and various other TDS related MIS Reports.

Facilitates automatic generation of quarterly as well as annual eTDS returns in the physical as well as e-Return formats.

Allows Challan reconciliation facility to keep track of issue of TDS certificates and remittance through challans.

Also generates consolidated TDS Certificates, Challans and Annual Returns for statutory and tax audit purposes.

1


Configuring TDS in Tally.ERP 9TDS in Tally.ERP 9 manages all the TDS and eTDS requirements of the business and automates the TDS management with accurate tax computation. It further assists you to file tax returns in electronic format, thus minimizing the errors during entry.

Enabling TDS in Tally.ERP 9Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation

Set Enable Tax Deducted at Source (TDS) to Yes

Enable Set/Alter TDS Details and press Enter

In Company TDS Deductor Details screen,

Specify Tax Assessment Number (TAN) of the company

Specify the Income Tax Circle / Ward (TDS) details of the deductor

Specify the Deductor Type as Others for the Deductor Types other than government

Specify the Name of person responsible and his/her designation

Press Enter to Accept the screen

The Statutory and Taxation screen is as shown:

Figure 1. Statutory and Taxation Features screen

2


TDS Statutory MastersThe statutory masters contains details of TDS nature of payments, Deductee Types, rate of TDS for each nature of payment and period of applicability. These masters are loaded automatically soon after enabling TDS in Tally.ERP 9.

TDS Nature of Payments

Go to Gateway of Tally > Display > Statutory Info. > TDS Nature of Pymts

Figure 2. TDS Nature of Payments

Select a Nature of Payment from the list and press Enter

Figure 3. TDS Nature of Payments

3


Deductee Types

Go to Gateway of Tally > Display > Statutory Info. > Deductee Types

Figure 4. Deductee Types

Select a Deductee Type from the list and press Enter

Figure 5. Deductee Types

4


Recording Transactions

Booking Expenses and Deducting TDS

Illustration 1:

On 01-04-2011, Universal Enterprises received a bill (Vide No. PCS/001/11-12) from Prithvi Con-sulting Services, for Rs. 48,000/- towards Consultancy Charges. Consultancy Charges is subject to TDS under ‘Fees for Professional or Technical Services’ Nature of Payments.

The applicable Income tax rates for payment of ‘Fees for Professional or Technical Services’ to ‘Company Resident Deductee’ Type is TDS - 10%

Setup :

Create the ledger Prithvi Consulting Services under Sundry Creditors with

Maintain balances bill-by-bill to Yes

Is TDS Deductable to Yes

Deductee Type as Company - Resident

PAN/IT No. as AGBPP8210B

Create the ledger Consultation Charges under Indirect Expenses with

Inventory Values are affected as No

Is TDS Applicable as Yes

Default Nature of Payment as Fees for Professional Or Technical Services

Create the TDS tax ledger TDS on Consultancy Charges under Duties & Taxes with

Type of Duty/Tax as TDS

Nature of Pymt as Fees for Professional Or Technical Services

Create Journal Voucher

Go to Gateway of Tally > Accounting Vouchers > Press F7: Journal

1. Press F2 and specify the voucher date2. Select the required expense ledger in the Debit field and press Enter3. Enter the Amount4. In the Expense Allocation screen, under TDS Nature of Payment Details, select the required TDS

ledger5. The amount in the Assessable Value is defaulted6. Select the required party ledger in the Credit field and press Enter7. In the TDS Details screen, provide the following details:

Select New Ref as the Type of Ref. field

By default Jrnl / 1-1 is prefilled in the Name field

5


Select the required Nature of Payment

Select the required TDS ledger

The Assessable Amount field is defaulted with the amount specified against the expenses ledger

Set Yes in Deduct Now field (If the deduction has to be done later, this option needs to be set to No)

The tax amount deducted at source is displayed in the TDS Amount field

The amount (after deducting TDS) payable to the party is displayed in the Payable Amountfield

The TDS Details screen is displayed as shown:

Figure 6. Completed TDS Details Screen

Press Enter to accept TDS Details

8. The Payable Amount calculated in the TDS Details screen will be defaulted in the Credit field9. Press Enter to view Bill–wise Details screen10.In Bill–wise Details screen,

Select New Ref as the Type of Ref

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In the Name field, enter the bill name

Skip the Due Date or Credit Days field

Accept the default amount allocation and Dr/Cr

Press Enter, select New Ref as Type of Ref and Enter Bill name

Press Enter to accept the amount allocation

The Bill-wise Details screen appears as shown:

Figure 7. Bill-wise Details

11.Select the required TDS ledger in the Credit field and press Enter to accept the amount

In the above screen, the amount payable to the party after deduction of TDS is displayed separately and the TDS deducted amount is displayed separately for easy identification of bill amount in the outstanding statement.

7


The Journal Voucher is displayed as shown:

Figure 8. Journal Voucher

12.Press Enter to accept

Illustration 2:

On 13-04-2011, Universal Enterprises received a Bill (Vide No. SAA/102) for Rs. 80,000/- from Southern Advertisement Agency towards Advertisement Expenses. The applicable Income tax rates for ‘Advertisement Expenses’ payable to ‘Contractors’ is TDS - 2%

Setup :

Create the ledger Southern Advertising Agency under Sundry Creditor with



Deductee Type as Partnership Firm

PAN/IT No. as AQBGG8570B

Create the ledger Advertisement Expenses under Indirect Expenses with


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Default Nature of Payment as Payment to Contractors (Advertisement Contractors)

Create the TDS tax ledger TDS on Advertising Expenses under Duties & Taxes with


Nature of Pymt as Fees for Payment to Contractors (Advertisement Contractors)

In F12: Purchase Invoice Configuration, set Use Common Ledger A/c for Item Allocationand Use Defaults for Bill Allocations to No

Create Purchase Voucher

Go to Gateway of Tally > Accounting Vouchers > F9: Purchase

1. Press Alt + I for Account Invoice mode2. Press F2 and specify the voucher date3. In Party’s A/c Name field, select the required party ledger from the List of Ledger Accounts4. Under Particulars, select the required expense ledger and press Enter5. Type the Amount and press Enter to view TDS Nature of Payment Details screen 6. The TDS Nature of Payment Details screen displays the Nature of Payment and the Assessable

Value of the expenditure.7. Select the required TDS ledger from the List of Ledger Accounts and press Enter to view the TDS

Details screen.8. In the TDS Details screen,


By default Purc / 1-1 is pre-filled in the Name field

Select the required Nature of Payment ledger

The Assessable Amount field is defaulted and the TDS Amount is calculated automatically based on the applicable TDS rates

The TDS Details screen appears as shown:

9


Figure 9. TDS Details

Press Enter to accept the TDS Details screen

9. In the Bill-wise Details screen, Select New Ref as the Type of Ref



Accept the default amount allocation and Dr/Cr and press Enter

Select New Ref as Type of Ref and enter bill name

10


The Bill-wise Details screen appears as shown:

Figure 10. Bill-wise Details screen

Press Enter to accept the amount

11


The Purchase Voucher is displayed as shown:

Figure 11. Purchase Voucher

10.Press Enter to accept

Booking Expenses and Deducting TDS LaterIllustration 3:

On 20-04-2011, Universal Enterprises received a Bill (Vide No. CE/001) for Rs. 15,000/- from Citi Enterprises towards commission charges. The company intends not to deduct TDS on the above transaction at the time of booking the expenses.

Setup :

Create the ledger Citi Enterprises under Sundry Creditors with



Deductee Type as Body of Individuals

PAN/IT No. as ARTBB4560C

Create the ledger Commission Expenses under Indirect Expenses with



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Default Nature of Payment as Commission or Brokerage

Create the TDS tax ledger TDS on Commission under Duties & Taxes with


Nature of Pymt as Commission or Brokerage


Go to Gateway of Tally > Accounting Vouchers > Press F7:Journal

1. Press F2 and specify the voucher date 2. Select the required expense ledger in the Debit field and enter the amount 3. In the TDS Nature of Payments Details screen, press Enter to accept the Nature of Payment and

the Assessable Value4. Select the party ledger in the Credit field and press Enter, the TDS Details screen appears,5. In TDS Details screen, enter the following details:

Select New Ref in Type of Ref field

In the Name field, accept the default TDS reference number

Select the required Nature of Payment and the required TDS ledger

Set Deduct Now to No (in order to deduct the TDS later)

The Payable Amount field displays the amount payable to the party

Figure 12. TDS Details screen

13


Press Enter to accept the TDS details screen

6. The Payable Amount calculated in the TDS Details screen is defaulted in the party’s Amount (Credit) field

7. Press Enter to view Bill–wise Details screen8. In Bill–wise Details screen,


In the Name field enter the bill name


The Bill-wise Details screen is as shown:

Figure 13. Bill-wise Detail screen

Press Enter to accept Bill-wise Details screen

14




9. Press Enter to accept

Illustration 4:

On 23-04-2011, Universal Enterprises paid Rs. 55,000/- to Southern Advertisement Agency towards Advertisement Expenses (vide Ch. No. 145687).

Setup :

In F12: Configure, set Use Single Entry mode for Pymt/Rcpt/Contra to No

Create Payment Voucher

Go to Gateway of Tally > Accounting Vouchers > Press F5: Payment

1. Press F2 and specify the voucher date 2. In Debit field, select the required expense ledger from the List of Ledger Accounts3. Enter the Amount and press Enter to view Bill-wise Details screen4. In Bill-wise Details screen

Select Agst Ref in the Type of Ref

15


Select the required Pending Bills in Name field, Amount is defaulted automatically

The Bill-wise details screen is as shown:


5. In Credit field, select the bank account ledger from the List of Ledger Accounts, the amount is defaulted automatically

6. In the Banking Allocations screen, enter the Favouring Name, Instrument No., Instrument Date and Crossing details

The Payment Voucher is displayed as shown:

16


Figure 16. Completed Payment Voucher


Illustration 5:

On 23-04-2011, Universal Enterprises paid Rs. 43,200- (vide Ch. No. 145690) to Prithvi Consulting Services towards final settlement of Bill No. PCS/001/11-12 dt. 10/04/2011.



1. Press F2 and specify the voucher date 2. In Debit field, select the required party ledger from the List of Ledger Accounts3. Enter the amount and press enter to view Bill-wise Details screen4. In Bill-wise Details screen,

Select Agst Ref in the Type of Ref

Select the required Pending Bills in Name field, Amount is defaulted automatically

17


The Bill-wise Details screen is displayed as shown:


Press Enter to accept the screen

5. In Credit field, select the required bank account ledger from the List of Ledger Accounts, amount is defaulted automatically


18



Figure 18. Payment Voucher


TDS Deduction at Lower RateThe Income Tax Act, as per section 197 allows the benefit of deduction of tax at source at a lower rate on filing of declaration in the prescribed form, with the payer.

Illustration 6:

On 25-04-2011, Universal Enterprises received a bill for Rs. 45,000/- from Cegon Enterprises towards Commission Charges. Cegon Enterprises has been granted a lower deduction certificate for deduction of Tax @ 5% on commission.

i. Create Party ledger (Cegon Enterprises)

Go to Gateway of Tally > Accounts Info. > Ledgers > Create

In F12: Configure (Ledger Configuration), set Allow Advanced entries in TDS Master toYes

Enter the Name of the Party Ledger

19


Select Sundry Creditors from the List of Groups in the Under field

Set Maintain balances bill-by-bill to Yes

Enter the Default Credit Period, if required

Set Is TDS Deductable to Yes

In the Deductee Type field, select Partnership Firm from the List of Deductee Type

Set Use Advanced TDS Entries to Yes

In Advanced TDS Entries screen, set the option Zero / Lower Deduction to Yes

In Zero / Lower Deduction Details sub-screen

Select Nature of payment

Select Section Number

Enter the Certificate No./ Date, Applicable From date and Applicable To date

Enter the alloted TDS rate

Enter the Surcharge, Ed Cess and Sec Ed Cess, if applicable (Tally.ERP 9 defaults the rate as Zero)

Figure 19. Zero / Lower Deduction Details

Press Enter to accept the sub-screen

Press Enter to accept the Advanced TDS Entries screen

Type the Mailing Details and Tax information of the party if required

Press Enter to accept

ii. Create Journal Voucher


1. Press F2 and specify the voucher date 2. Select the required expense ledger in the Debit field and press Enter3. Enter the amount

20


4. The TDS Nature of Payment Details screen displays the Nature of Payment and the Assessable Value of the expenditure

5. Press Enter to accept the Nature of Payment6. The amount in the Assessable Value is defaulted 7. Select the required party ledger in the Credit field and press Enter8. In the TDS Details screen, provide the following details

Select New Ref in the Type of Ref. field


Select the required Nature of Payment and press Enter to accept 197 in Is Zero / Lower Ratefield

Select the required TDS ledger from the list of TDS Duty Ledgers

The Assessable Amount field is defaulted with the amount specified against the expenses ledger

Set Yes in Deduct Now field and the tax amount deducted at source is displayed in the TDS Amount field

The amount (after deducting TDS) payable to the party is displayed in the Payable Amountfield. The TDS Details screen is displayed as shown:

Figure 20. TDS details screen

21


9. Press Enter to accept TDS Details screen10.The Payable Amount calculated in the TDS Details screen will be defaulted in the party’s Amount

(Credit) field11.Press Enter to view Bill–wise Details screen12.In Bill–wise Details screen,





Press Enter, select New Ref as Type of Ref and Enter Bill name for TDS

Press Enter to accept the Amount allocation

Figure 21. Bill–wise Details screen

13.Select the required TDS ledger in the Credit field and press Enter to accept the amount14.Enter the details of the transaction in the narration field

22




15.Press Enter to accept.

TDS Deduction at Zero Rate The Income Tax Act, as per section 197A allows the benefit of non-deduction of tax at source to an individual payee on filing of declaration in the prescribed form with the payer.

Illustration 7:

On 25-04-2011, Universal Enterprises received a bill for Rs. 15,000/- from Edens Advisory Services towards Fees for Professional Services. Edens Advisory Services has been granted a No Deduction Certificate.

i. Create the Party Ledger (edens Advisory Services)

Go to Gateway of Tally > Accounts Info. > Ledgers > Create (Under Single Ledger)

In F12: Configure (Ledger Configuration), ensure that Allow Advanced entries in TDS Master is set to Yes

23


Enter the Name of the Party Ledger

Select Sundry Creditors from the List of Groups in the Under field

Set Maintain balances bill-by-bill to Yes

Enter the Default Credit Period, if required

Set Is TDS Deductable to Yes

In the Deductee Type field, select Association of Persons from the List of Deductee Type

Set Use Advanced TDS Entries to Yes

In Advanced TDS Entries screen, set the option Zero / Lower Deduction to Yes

In Zero / Lower Deduction Details screen

Select Nature of payment as Fees for Professional Or Technical Services

Select Section Number as 197A

Enter the Certificate No./ Date

Enter the Applicable From date

Enter the Applicable To date

The TDS rate will be defaulted to 0%

Figure 23. Zero / Lower Deduction Details

Press Enter to accept the Advanced TDS Entries screen

Type the Mailing Details like Address, State and PIN Code

In Tax information field enter the PAN/IT No and accept the screen

ii. Create Journal Voucher


1. Press F2 and specify the voucher date 2. Select the required expense ledger in the Debit field and press Enter

24


3. Enter the amount 4. The TDS Nature of Payment Details screen displays the Nature of Payment and the Assessable

Value of the expenditure. Press Enter to accept Fees for Professional Or Technical Services as Nature of Payment

The amount in the Assessable Value is defaulted

5. Select the required party ledger in the Credit field and press Enter6. In the TDS Details screen,




7. In Is Zero/ Lower Rate field, select section 197A for zero deduction


Figure 24. TDS Details screen

8. Enter the details of the transaction in the narration field

25




9. Press Enter to accept.

Illustration 8:

On 30-04-2011, Universal Enterprises deducts TDS at the following rates on Commission payable to Citi Enterprises (vide B.No. CE/001 dt. 20/04/2011). The applicable Income tax rates for Commis-sion is TDS @ 10%.



1. Press F2 and specify the voucher date 2. Press Alt +S or click on S: TDS Deduction button, to view TDS Deductions screen3. In TDS Deduction screen,

In Till Date field, enter the date till which the TDS deduction is to be made

Select the required party ledger from the List of Ledger(s) in the Party field

Select the required expense ledger from the List of TDS Nature of Payments

26


Figure 26. TDS Deduction

Press Enter to accept the TDS Deductions sub-screen

4. The TDS amount with the respective bill details will be prefilled automatically as shown:

Figure 27. Journal Voucher with Auto filled TDS values

5. In the Bill-wise Details screen, Select Agst Ref in the Type of Ref

Select CE/001 dated 20-Apr-2011 in the Name field and press Enter

The amount is defaulted

27


The completed Bill-wise Details is displayed as shown:



6. Enter the details of the transaction in the Narration field, if required

28





Deducting TDS on PaymentsIllustration 9:

On 30-04-2011, Universal Enterprises paid Rs. 2,00,000/- to Mr. Vijay Kumar (Landlord) towards Rent for the month of April 2011 (vide Ch. No. 145787). The applicable Income tax rates for payment of ‘Rent’ to ‘Individual / HUF - Resident’ Deductee Type is TDS - 10%

Setup :

Create the ledger Vijay Kumar under Sundry Creditors with Deductee Type as Individual /HUF -Resident

Create the ledger Rent under Indirect Expenses with



Default Nature of Payment as Rent of Land

Create the TDS tax ledger TDS on Rent under Duties & Taxes with

Type of Duty/Tax as TDS and Nature of Pymt as Commission or Brokerage

29




1. Press F2 and specify the voucher date 2. In Debit field, select the required ledger from the List of Ledger Accounts3. Enter the Amount and press Enter to view Bill-wise Details screen4. In Bill-wise Details screen,

Select New Ref in the Type of Ref field

Enter the Bill name

Press Enter to skip the Due Date, or Credit Days field

Press Enter to accept the Amount

Figure 30. Bill-wise details Screen

Press Enter to accept the Bill-wise Details screen

5. In the Credit field, select TDS on Rent from the List of Ledger Accounts and press Enter6. In the TDS Details screen, provide the following details


By default, Pymt / 3-1 is prefilled in the Name field

Select Rent of Land, Building Or Furniture in Nature of Payment field

7. The Assessable Amount field is defaulted and the TDS Amount is calculated automatically based on the applicable TDS rates

30



Figure 31. TDS Details Screen

Press Enter to accept the TDS Details screen

8. In Credit field, select the required bank account ledger from the List of Ledger Accounts, the bal-ance Amount is defaulted automatically


31



Figure 32. Payment Voucher


Payment of TDS As per Income Tax Act, corporate & non- corporate entities (deductors) making payments to third parties (deductees) are required to deduct tax at source at the prescribed rates on such payments. The TDS so deducted should be deposited to the credit of the central government within one week from the last day of the month in which the deduction is made, into any of the designated branches of banks authorized to collect taxes on behalf of government accompanied by Income Tax Challan ITNS 281.

Illustration 10:

On 05-05-2011, M/s. National Enterprises paid Rs. 4,800/- to Government towards TDS on Consult-ing Charges for the month of April 2011.

Setup :

In F12: Configure (Payment Configuration), set Use Single Entry mode for Pymt/Rcpt/Contra to Yes

32




1. Press F2 and specify the voucher date 2. Press Alt+S or click S: Stat Payment button, to view Statutory Payment screen3. In the Statutory Payment screen,

Select TDS from the list in the Type of Duty/Tax field

Set Yes to Auto Fill Statutory Payment to auto calculate and fill the duty payable to the Gov-ernment

Enter the date till which the TDS deductions are to be considered in Deducted Till Date field

Select 194J in the Section field


Select the Deductee Status

Select the required bank account ledger from the List of Ledger Accounts

4. The Statutory Payment screen is displayed as shown:

Figure 33. TDS Statutory Payment

Press Enter to accept the Statutory Payment screen

5. The bank ledger selected in the Statutory Payment screen is defaulted automatically in the Account field

33


6. Set Provide Details to Yes, to view the TDS Payment Details7. In the Payment Details screen

Enter the periodicity of the payment of TDS amount in the From Date and To Date field respectively

Enter the Cheque/DD No details

Select the Bank in the Name of Bank field, once HDFC Bank is selected, Bank Account num-ber, Branch Name and BSR Code is pre-filled

Enter the Branch Account Number

Enter the Bank Branch name

Enter the BSR code of the branch

Enter the Challan No. and Challan Date

Figure 34. Payment Details


8. Accept the default values in the Bank Allocations for: screen9. Enter the details of the transaction in the Narration field, if required

34


The TDS Payment voucher is displayed as shown:

Figure 35. TDS Payment Voucher


Illustration 11:

On 05-05-2011, Universal Enterprises paid Rs. 1,600/- to Government towards TDS on Advertise-ment Expenses for the month of April 2011.



1. Press F2 and specify the date2. Press Alt+S or click S: Stat Payment button, to view Statutory Payment screen3. In Statutory Payment screen,

Select the Type of Duty/Tax

Set Yes to Auto Fill Statutory Payment to auto calculate and fill the duty payable to the gov-ernment


Select 194C in the Section field

35


Select the Nature of Payment

Select the Deductee Status

Select the required bank account ledger from the List of Ledger Accounts

The Statutory Payment screen is displayed as shown:



4. The Bank Ledger selected in the Statutory Payment screen is defaulted automatically in the Account field

5. Set Provide Details to Yes, to view the TDS Payment Details6. In the Payment Details screen



Select the Bank in the Name of Bank field




36



Figure 37. Payment Details Screen


The Payment voucher will appear as shown:



37


Illustration 12:

On 05-05-2011, M/s. National Enterprises paid Rs. 11,500/- to Government towards TDS on Com-mission for the month of April 2011.



1. Press F2 and specify the voucher date2. Press Alt+S or click S: Stat Payment button, to view Statutory Payment screen3. In the Statutory Payment Screen,

Select the Type of Duty/Tax

Set Yes to Auto Fill Statutory Payment to auto calculate and fill the duty payable to the Gov-ernment


Select 194H in the Section field and the required Nature of Payment

Select the Deductee Status and the required bank account ledger from the List of Ledger Accounts

The Statutory Payment screen is displayed as shown:



38


4. The Bank Ledger selected in the Statutory Payment screen is defaulted automatically in the Account field

5. Set Provide Details to Yes, to view the TDS Payment Details6. In the Payment Details screen,



Select the Bank in the Name of Bank field





Figure 40. Payment Details Screen


7. Enter the details of the transaction in the Narration field, if required

The completed Payment voucher will appear as shown:

39




TDS ReportsThe following TDS Reports can be generated in Tally.ERP 9:

TDS Computation Report

TDS Challan

TDS Statutory Returns

Outstandings

Exception Report

To view the TDS Reports,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports

40


Figure 42. TDS Reports

ComputationThe TDS Computation report displays information about TDS transactions. The TDS Computation report has 2 broad subdivisions,

Deduction Details: In this section, the assessable value of Expenses & Advances, TDS Deducted amount and the Balance Deductable at Normal and Lower Rate is displayed

Payment Details: In this section, the details of TDS paid during the current and previous month and the balance payable is displayed

To view TDS Computation report,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Computation

41


Figure 43. TDS Computation

TDS Computation Party Wise


Press Enter on the Expenses and Advances under Deduction details section to drill down to Party Wise report

42


Figure 44. TDS Computation – Party Wise

You can configure the Party wise report, by pressing F12: Configure

In F12: Configure,

Set Show Tax Deducted to Yes

Show Tax Deductable Break-up to Yes

Set all other options to No

43


Figure 45. TDS Computation – Party Wise

TDS Computation Payment Wise

The TDS Paid report displays the details of TDS payments made during the selected period.


Press Enter on Paid under Payment details section to drill down to TDS Paid report

44


Figure 46. TDS Paid Report

TDS Computation Balance Payable


Press Enter on any particular Balance Payable under Payment details section

The TDS Payable report is displayed as shown:

45


Figure 47. TDS Payable Report

Challan ReconciliationAs per Income Tax Act, the details of payment of Tax Deducted at Source are required to be furnished in the TDS certificate issued to the deductee. For this purpose, the Challan details containing the infor-mation in respect of Bank Challan No. & Date, Bank Name, BSR Code etc., are required to be speci-fied.

Tally.ERP 9 allows the user to enter all the required information as specified by the statutes, by using the Challan Reconciliation facility.

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Challan Reconciliation

Press F5: Challan Reconcile

46


The Challan Reconciliation report is displayed as shown:

Figure 48. Challan Reconciliation

Click on S: Set Challan Details button to fill the challan details

Press Enter to accept the Challan Details

47


Figure 49. Challan Reconciliation Screen

ReturnCorporate & non- corporate entities (deductors) responsible for making payments to third parties (deductees) and deducting tax at source at the prescribed rates on such payments are required to furnish TDS returns containing details of deductee(s) and the payment details relating to the deposit of such tax to Income Tax Department. Tally.ERP 9 allows you to generate and print statutory returns in physical as well as uploadable formats as prescribed by the government. In Tally.ERP 9, you can generate the following Quarterly/Annual Returns

Form 16A

Form 26Q

Annexure to 26Q

Form 27Q

Annexure to 27Q

Form 26

Annexure to 26

Form 27

Annexure to 27

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To generate TDS Return,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Return

Figure 50. TDS Return

Form 16A

Every person deducting tax at source from payments other than salaries, is required to furnish a certifi-cate in Form 16A to the person on whose account such tax is paid to the credit of Central Government within the prescribed time and specifying the amount deducted, the rate at which the tax has been deducted and any other particulars as may be prescribed.

To print Form 16A,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Return > Print Form 16A

In Name of Ledger screen, select the required party ledger from the List of TDS Parties

Press Enter, the Printing TDS Form16A screen appears

In Printing TDS Form 16A screen, enter the details as shown:

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Figure 51. Printing TDS Form 16A screen

Press Enter to Print Form 16A

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Figure 52. Printed Form 16A

Form 26Q

Form 26Q is a quarterly return for deduction of tax in respect of payments made to residents other than salary. To print Form 26Q,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Return > Form 26Q

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In Printing TDS Form 26 Quarterly, press Backspace and enter the following details

Figure 53. Printing TDS Form 26Q

The printed Form 26Q is displayed as shown:

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Figure 54. Form 26Q (Page 1)

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Annexure to Form 26Q

As per Income Act, the annexures in respect of each deductee with breakup of TDS is required to be furnished along with the Quarterly/Annual Returns. Annexure for each deductee should be generated in separate page.

To print Annexure to Form 26 Q,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Return > Annexure to Form 26Q

In Printing Form 26Q Annexure, press Backspace and enter the required details

Press Enter to print Annexure to Form 26 Q

The printed Annexure to Form 26Q appears as shown:

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Figure 56. Annexure to 26Q (Page 1)

Figure 57. Annexure to 26Q (Page 2)

The subsequent pages will be printed for the next deductee with the TDS breakup details.

Form 27 Q

Form 27Q is a Quarterly return for deduction of tax in respect of payments made to non-residents other than salary.

To print Form 27Q,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Return > Form 27Q

In Printing TDS Form 27Q screen, press Backspace and enter the required details

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The printed Form 27Q appears as shown:



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Annexure to 27Q

As per Income Act, the annexures in respect of each deductee with breakup of TDS is required to be furnished along with the Quarterly/Annual Returns. Annexure for each deductee should be generated in separate page.

To Print Annexure to Form 27Q,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Return > Annexure to Form 27Q

In Printing TDS Form 27Q Annexure, press Backspace and enter the required details

Press Enter to print Annexure to Form 27Q

Form 26

Form 26 is an Annual return for deduction of tax in respect of payments made to residents other than salary.

To print Form 26,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Return > Form 26

Press Enter to print Form 26

The printed Form 26 appears as shown:

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Figure 60. Printed Form 26

Annexure to Form 26

To Print Annexure to Form 26,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Return > Annexure to Form 26

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The printed Annexure to Form 26 appears as shown:

Figure 61. Annexure to Form 26

Similarly, the annexure for the subsequent nature of payment will be printed in the next page.

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Form 27

Form 27 is an annual return for deduction of tax in respect of payments other than salary made to non-residents.

To print Form 27,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Return > Form 27

Figure 62. Printed Form 27

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Annexure to 27

To print Annexure to Form 27,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Return > Annexure to Form 27

In Printing TDS Form 27 Annexure, press Backspace and enter the required details

Press Enter to print

eTDS ReturnsIn Tally.ERP 9, the eReturn menu displays the eTDS Quarterly / Annual Forms, which can be exported and validated with the File Validation Utility.

To view the E-TDS Forms,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > E–Return > E–TDS

Figure 63. E-TDS Forms

In our examples, we have not considered payments made to non-residents. Hence, the Form 27Q, Form 27 and Annexure to Form 27Q will appear blank.

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Form 26Q

Form 26Q is a Quarterly return for deduction of tax in respect of payments made to residents other than salary. To export Form 26Q

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > E-Return > E-TDS > Form 26Q

In Exporting eTDS Forms, press Backspace and enter the following details:

Figure 64. Exporting eTDS Forms

The exported file is placed in the Tally.ERP 9 directory with the file name as specified above.

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Figure 65. Exported Form 26Q in Tally.ERP 9 Directory

The exported file (Form 26Q) is required to be validated with the File Validation Utility (a freely down-loadable utility from NSDL website) and after validation, the returns should be submitted to the depart-ment in CD along with Form 27A in Physical Form.

Print Form 27A

Form 27A is a summary of TDS return which contains control totals of amount paid and income tax deducted at source. Form 27A is to be filed in physical form with each return i.e., Form 26Q, Form 27 Q, Form 26 and Form 27.

Go to Gateway of Tally > Display >Statutory Reports > TDS Reports > E–Return > Print Form 27A

In the Printing TDS Form 27A screen, enter the required details

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Figure 66. Printing TDS Form 27A

Press Enter to Print Form 27A

The printed Form 27A is displayed as shown:

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Figure 67. Printed Form 27A

Form 27Q

Form 27Q is a Quarterly return for deduction of tax in respect of payments made to non-residents other than salary.

To export Form 27Q,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > E–Return > E–TDS > Form 27Q

In Exporting eTDS Forms screen, press Backspace and enter the required details

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Figure 68. Exporting eTDS Forms

Press Enter to export Form 27Q

Similarly, you can export Form 26 and Form 27 in the manner as explained above.

OutstandingsIn Tally.ERP 9, you can generate the following TDS outstandings reports :

TDS Payables

Ledger-wise TDS Payable

Nature of Payment

TDS Not Deducted

TDS payables

The TDS Payables report gives you information on the TDS payable (pending) to Government for a particular Nature of Payment.

To view TDS Payables report,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Outstandings > TDS Payables

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Figure 69. TDS Payable Report

Press Alt+F1 or click on F1: Detailed to view in detailed mode

To print TDS Payables report, press Alt+P from the TDS Payable report screen

The printed TDS Payables report appears as shown:

Figure 70. Print Preview – TDS Payable Report

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Ledger

TDS Ledger Outstandings report displays ledger wise TDS outstandings. This report can be viewed for one ledger or for all the ledgers.

To view TDS Ledger report,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Outstandings > Ledger

Figure 71. Ledger Menu

Select All Items, to view Ledger Outstandings for all the ledgers

The TDS Ledger Outstandings report appears as shown:

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Figure 72. TDS Ledger Outstandings – All Items

Or, select One Item, to view TDS Ledger Outstandings for a particular ledger

Select the required ledger and press Enter to view TDS Ledger Outstandings report

The TDS Ledger Outstandings report for a single ledger appears as shown:

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Figure 73. TDS Ledger Outstandings – One Item

Nature of Payment

TDS Nature of Payment Outstanding report displays Nature of Payment-wise TDS outstandings. This report can be viewed for all the Nature of Payment or for one Nature of Payments.

To view TDS Nature of Payment report,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Outstandings > Nature of Payment

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Figure 74. Nature of Payment

Select All Items, to view Nature of Payment Outstandings for all the Nature of Payment

The TDS Nature of Payment Outstandings report is displayed as shown:

Figure 75. TDS Nature of Payment Outstandings – All Item

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Or, select One Item, to view TDS Nature of Payment Outstandings for particular Nature of Payment

From the List of TDS Nature of Payments, select the required ledger

The TDS Nature of Payment Outstandings report is displayed as shown:

Figure 76. TDS Nature of Payment Outstandings – One Item

TDS Not Deducted

The TDS Not Deducted report displays party wise information on the amount subject to TDS, Tax to be Deducted on such amount, Tax Deducted till date and Balance to be deducted.

To view the TDS Not Deducted report,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Outstandings > TDS Not Deducted

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Press F7 (Show All) to display all transactions

Press Alt+F1 or click on F1: Detailed to view in detailed mode

The TDS Deducted Details screen appears as shown:

Figure 77. TDS Not Deducted Report

Exception ReportsIn Tally.ERP 9, you can generate various TDS exception reports to help track and rectify any discrep-ancies in TDS entries. Tally.ERP 9 allows you to generate exception reports to track Migrated vouchers, Migrated bills, TDS masters with advanced configuration, Migrates TDS vouchers, TDS masters without PAN details and TDS masters without deductee type.

In our case study, the TDS Not Deducted Report will be blank, since TDS is deducted on all the transactions. Hence, you may press F7 to display all TDS related transactions.

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To view TDS Exception Reports,

Go to Gateway of Tally > Display> Statutory Reports > TDS Reports > Exception Reports

Figure 78. Exception Reports

PAN Not Available

The PAN Not Available report displays all the party ledgers for whom the PAN details is not available.

To view the PAN Not Available report,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Exception Reports > PAN Not Available

Unknown Deductee Type

The Unknown Deductee Type report displays all the party ledgers for whom the Deductee Type is not defined.

To view the Unknown Deductee Type report,

Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Exception Reports > Unknown Deductee Type

Migrate Tool

The migrate tool comprises of the following reports:

Track Migrate Voucher: displays date-wise Migrated and Non-migrated vouchers. Tally.ERP 9 displays the non-migrated vouchers amount in bold for easy identification

Track Migrate Bills: displays tax bill name wise migrated and non-migrated voucher. In this report, you can identify migrated / non- migrated vouchers by comparing the previous deduc-tion amount and new deduction amount and previous payment amount and new payment amount are same.

Track Masters: displays TDS Ledger wise Lower Deduction, Zero Deduction and IT Exemp-tion details

Re-Migrate: The Re-Migrate option, first un-migrates all the TDS vouchers and then re-migrates all the vouchers.

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Documents

18 Tax Deducted at Source - ERP, Accounting Software & Audit tool