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https://help.tallysolutions.com/docs/te9rel49/Tax_Deducted_at_Source/Payment_of_Interest_or_Penalty_without_including_TDS_ledger.htm

Payment of Interest or Penalty without including TDS ledger

 

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

The procedure to account for Penalty is also similar.

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 TDS 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)

Note: If the transaction is recorded to account for Penalty, the ledger Penalty should be selected instead of Interest

  1. Select the required Payment Type from the List of Payment Types available

  1. Enter the amount to be paid

  2. Set Provide Details to Yes

  3. In the Payment Details screen that appears,

    • Select the appropriate Section No.

    • The relevant Natures of Payment will be displayed. Select the Nature of Payment required

    • Select the Company/ Non Company, as per  Deductee Status

    • Enter Cheque/DD No and Date in relevant fields

    • Select the Name of Bank from the List of Banks displayed. Bank Account Number, Branch Name, BSR Code are auto-filled, as per the details provided in the Bank ledger selected

    • Fill in the Challan Details as required

The completed Payment Details screen is as shown below:

  1. Press Enter to go to the Payment Voucher screen

  2. Press Enter to accept the Voucher amount

  3. Enter the required details in the Bank Allocation screen  

  4. Enter Narration, if required

The completed Payment Voucher is as shown below:

  1. 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

Similarly, Interest for Non-Resident, Penalty for Resident and Penalty for Non-Resident can be accounted using Tally.ERP 9

 

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