Payment of Interest without TCS Ledger

Let us now see how the payment of Interest is handled in Tally.ERP 9, when the Payment entry doesn't have a TCS ledger included.

Step 1: Record a Payment Voucher

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

1. Press F2 and change date to 10-02-2014

2. Click the button S: Stat Payment

3. In the Statutory Payment screen that appears, select TCS as the Type of Duty

4. Press Enter to go to the Payment voucher

5. In the Account field select Canara Bank

6. In the field Particulars select the ledger Interest (which is grouped under Indirect Expenses)

7. Select Interest from the List of Payment Types displayed

7. Enter 200 in the field Amount

8. Set Provide Details to Yes

The Provide Details screen appears as shown below:

9. Select the Nature of Goods, as required

10. Enter Cheque/DD No, Date, Name of Bank, Bank Account Number, Branch Name, BSR Code, Challan No., and Challan Date as required

11. Press Enter to go to the Payment Voucher screen

12. Press Enter to accept the Voucher amount

13. Enter the required details in the Bank Allocation screen  

14. Enter Narration, if required

The completed Payment Voucher is as shown below:

12. Press Enter to accept

Step2: Generating ITNS 281 Challan

1. Open the Payment Voucher in alteration mode

2. Press Alt+P or click P: Print

3. In the Voucher Printing screen, set the option Print as TDS Challan to Yes

4. Save the Voucher Printing screen

5. The preview of ITNS 281 Challan is generated. Press F4 to zoom- in

The ITNS 281 Challan appears as shown below:

You can see that the Interest Payment, thus made is captured in the ITNS 281 challan

The procedure to account for Penalty is also similar.