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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
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Tax Deducted at Source in Tally.ERP 9
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.
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Tax Deducted at Source in Tally.ERP 9
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
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Tax Deducted at Source in Tally.ERP 9
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
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Tax Deducted at Source in Tally.ERP 9
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
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Tax Deducted at Source in Tally.ERP 9
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
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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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.
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Tax Deducted at Source in Tally.ERP 9
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
Maintain balances bill-by-bill to Yes
Is TDS Deductable to Yes
Deductee Type as Partnership Firm
PAN/IT No. as AQBGG8570B
Create the ledger Advertisement Expenses under Indirect Expenses with
Inventory Values are affected as No
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Tax Deducted at Source in Tally.ERP 9
Is TDS Applicable as Yes
Default Nature of Payment as Payment to Contractors (Advertisement Contractors)
Create the TDS tax ledger TDS on Advertising Expenses under Duties & Taxes with
Type of Duty/Tax as TDS
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,
Select New Ref as the Type of Ref. field
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:
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Tax Deducted at Source in Tally.ERP 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
In the Name field, enter the bill name
Skip the Due Date or Credit Days field
Accept the default amount allocation and Dr/Cr and press Enter
Select New Ref as Type of Ref and enter bill name
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Tax Deducted at Source in Tally.ERP 9
The Bill-wise Details screen appears as shown:
Figure 10. Bill-wise Details screen
Press Enter to accept the amount
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Tax Deducted at Source in Tally.ERP 9
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
Maintain balances bill-by-bill to Yes
Is TDS Deductable to Yes
Deductee Type as Body of Individuals
PAN/IT No. as ARTBB4560C
Create the ledger Commission Expenses under Indirect Expenses with
Inventory Values are affected as No
Is TDS Applicable as Yes
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Tax Deducted at Source in Tally.ERP 9
Default Nature of Payment as Commission or Brokerage
Create the TDS tax ledger TDS on Commission under Duties & Taxes with
Type of Duty/Tax as TDS
Nature of Pymt as Commission or Brokerage
Create Journal Voucher
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
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Tax Deducted at Source in Tally.ERP 9
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,
Select New Ref as the Type of Ref
In the Name field enter the bill name
Accept the default amount allocation and Dr/Cr
The Bill-wise Details screen is as shown:
Figure 13. Bill-wise Detail screen
Press Enter to accept Bill-wise Details screen
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Tax Deducted at Source in Tally.ERP 9
The Journal Voucher is displayed as shown:
Figure 14. Journal Voucher
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
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Tax Deducted at Source in Tally.ERP 9
Select the required Pending Bills in Name field, Amount is defaulted automatically
The Bill-wise details screen is as shown:
Figure 15. Bill-wise Details screen
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:
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Tax Deducted at Source in Tally.ERP 9
Figure 16. Completed Payment Voucher
7. Press Enter to accept
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.
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 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
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Tax Deducted at Source in Tally.ERP 9
The Bill-wise Details screen is displayed as shown:
Figure 17. Bill-wise Details screen
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
6. In the Banking Allocations screen, enter the Favouring Name, Instrument No., Instrument Date and Crossing details
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Tax Deducted at Source in Tally.ERP 9
The Payment Voucher is displayed as shown:
Figure 18. Payment Voucher
7. Press Enter to accept
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
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Tax Deducted at Source in Tally.ERP 9
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
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 press Enter3. Enter the amount
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Tax Deducted at Source in Tally.ERP 9
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
By default Jrnl / 3-1 is prefilled in the Name 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
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Tax Deducted at Source in Tally.ERP 9
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,
Select New Ref as the Type of Ref
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 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
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Tax Deducted at Source in Tally.ERP 9
The Journal Voucher is displayed as shown:
Figure 22. Journal Voucher
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
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Tax Deducted at Source in Tally.ERP 9
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
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 press Enter
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Tax Deducted at Source in Tally.ERP 9
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,
Select New Ref as the Type of Ref. field
By default Jrnl / 4-1 is prefilled in the Name field
Select the required Nature of Payment
7. In Is Zero/ Lower Rate field, select section 197A for zero deduction
The TDS Details screen is displayed as shown:
Figure 24. TDS Details screen
8. Enter the details of the transaction in the narration field
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Tax Deducted at Source in Tally.ERP 9
The Journal Voucher is displayed as shown:
Figure 25. Journal Voucher
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%.
Create Journal Voucher
Go to Gateway of Tally > Accounting Vouchers > Press F7: Journal
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
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Tax Deducted at Source in Tally.ERP 9
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
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Tax Deducted at Source in Tally.ERP 9
The completed Bill-wise Details is displayed as shown:
Figure 28. Bill-wise Details screen
Press Enter to accept the screen
6. Enter the details of the transaction in the Narration field, if required
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Tax Deducted at Source in Tally.ERP 9
The Journal Voucher is displayed as shown:
Figure 29. Journal Voucher
7. Press Enter to accept.
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
Inventory Values are affected as No
Is TDS Applicable as Yes
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
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Tax Deducted at Source in Tally.ERP 9
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 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
Select New Ref as the Type of Ref. field
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
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Tax Deducted at Source in Tally.ERP 9
The TDS Details screen is displayed as shown:
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
9. In the Banking Allocations screen, enter the Favouring Name, Instrument No., Instrument Date and Crossing details
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Tax Deducted at Source in Tally.ERP 9
The Payment Voucher is displayed as shown:
Figure 32. Payment Voucher
10.Press Enter to accept.
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
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Tax Deducted at Source in Tally.ERP 9
Create Payment Voucher
Go to Gateway of Tally > Accounting Vouchers > Press F5: Payment
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 required Nature of Payment
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
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Tax Deducted at Source in Tally.ERP 9
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
Press Enter to accept the screen
8. Accept the default values in the Bank Allocations for: screen9. Enter the details of the transaction in the Narration field, if required
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Tax Deducted at Source in Tally.ERP 9
The TDS Payment voucher is displayed as shown:
Figure 35. TDS Payment Voucher
10.Press Enter to accept.
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.
Create Payment Voucher
Go to Gateway of Tally > Accounting Vouchers > Press F5: Payment
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
Enter the date till which the TDS deductions are to be considered in Deducted Till Date field
Select 194C in the Section field
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Tax Deducted at Source in Tally.ERP 9
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:
Figure 36. TDS Statutory Payment
Press Enter to accept the Statutory Payment screen
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
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
Enter the Branch Account Number
Enter the Bank Branch name
Enter the BSR code of the branch
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Tax Deducted at Source in Tally.ERP 9
Enter the Challan No. and Challan Date
Figure 37. Payment Details Screen
Press Enter to accept the screen
The Payment voucher will appear as shown:
Figure 38. TDS Payment Voucher
7. Press Enter to accept.
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Tax Deducted at Source in Tally.ERP 9
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.
Create Payment Voucher
Go to Gateway of Tally > Accounting Vouchers > Press F5: Payment
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
Enter the date till which the TDS deductions are to be considered in Deducted Till Date field
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:
Figure 39. TDS Statutory Payment
Press Enter to accept the Statutory Payment screen
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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,
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
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 40. Payment Details Screen
Press Enter to accept the screen
7. Enter the details of the transaction in the Narration field, if required
The completed Payment voucher will appear as shown:
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Tax Deducted at Source in Tally.ERP 9
Figure 41. TDS Payment Voucher
8. Press Enter to accept.
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
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Tax Deducted at Source in Tally.ERP 9
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
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Figure 43. TDS Computation
TDS Computation Party Wise
Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Computation
Press Enter on the Expenses and Advances under Deduction details section to drill down to Party Wise report
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Tax Deducted at Source in Tally.ERP 9
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
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Tax Deducted at Source in Tally.ERP 9
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.
Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Computation
Press Enter on Paid under Payment details section to drill down to TDS Paid report
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Figure 46. TDS Paid Report
TDS Computation Balance Payable
Go to Gateway of Tally > Display > Statutory Reports > TDS Reports > Computation
Press Enter on any particular Balance Payable under Payment details section
The TDS Payable report is displayed as shown:
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Tax Deducted at Source in Tally.ERP 9
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
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Tax Deducted at Source in Tally.ERP 9
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
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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
Figure 51. Printing TDS Form 16A screen
Press Enter to Print Form 16A
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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
Figure 55. Form 26Q (Page 2)
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
The printed Form 27Q appears as shown:
Figure 58. Form 27Q (Page 1)
Figure 59. Form 27Q (Page 2)
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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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Tax Deducted at Source in Tally.ERP 9
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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