Yes, this new TDS Nature of Payment is available in the list of Nature of Payment (wherever applicable).

Only the TDS category name – Payment of certain amounts in cash – is provided in the Nature of Payment list. The calculation is not supported.

As per Finance Bill No. 2, this TDS nature of payment is applicable for financial institutions. The department has notified that if a person makes cash withdrawals from financial institutions in excess of the threshold limit of ? 1 crore, the financial institution must deduct TDS on the difference amount before making the payment. We are working to support TDS calculation as per this requirement, and a resolution will be available in our upcoming release.

In the PAN not available for party screen of Form 26Q – Uncertain Resolution, keep the cursor on PAN No. field. Enter one of the terms given below, based on the corresponding reason:

1. PANAPPLIED – If the party has given a declaration stating that he/she has applied for PAN, but are yet to receive the same.
2. PANINVALID – If the PAN format provided by the party is incorrect.
3. PANNOTAVBL – If the party has not given any declaration or PAN number.

The cursor will skip the PAN Status column. Once you save this screen, the voucher will be included in the return.

Consider the following example, in which the error Partially overlapped can occur.

A Stat Payment already exists (made on 12-Dec-2018) for a particular period (1-Nov-2018 to 30-Jan-2019). If another stat payment is recorded (on 12-Jan-2019) for an overlapping period (1-Jan-2019 to 31-Jan-2019), the error Partially overlapped occurs while saving the voucher. To correct this:

• Gateway of Tally > Display More Reports > Statutory Reports > TDS Reports > Challan Reconciliation.
  Alternatively, Alt+G (Go to) > type or search Challan Reconciliation > Press Enter.
• View the TDS Challan Reconciliation report for any date on which the payment entry was recorded (12-Dec-2018, in this example).
• Click L: Show All and correct the To period for the voucher (as 30-Nov-2018, in this example), and save it.

Now you can record a new Stat Payment voucher.

When the stat payment transaction recorded to remit the TDS amount to the department is not reconciled with the challan details, the information of deductees from whom TDS was deducted, was not captured in the e-TDS return file generated for Form 26Q and Form 24Q.

You need to reconcile the TDS payment transaction and record challan details to get deductee information in the e-TDS file.

1. Go to Gateway of Tally > Display> Statutory Reports> TDS Reports > Challan Reconciliation.
   Alternatively, Alt+G (Go to) > type or search Challan Reconciliation > Press Enter.
2. Select the required payment transaction in the Tax Reconciliation Report screen.
3. Press Alt+R (Reconcile) to reconcile.
4. Enter the From and To date of the quarter, Cheque/DD No., Cheque/DD Date, BSR Code of the bank, Challan No. and Challan Date.
5. Press Ctrl+A to accept.

After challan reconciliation, go to Form 26Q report, re-compute and overwrite the returns, before generating the e-TDS file.

You can set the threshold/exemption limit for purchases with TDS u/s 194Q in the Nature of Payment master. Once you have entered the limit, you can also choose whether or not to calculate tax on values exceeding the threshold/exemption limit.

There can be several reasons why TDS is not getting calculated automatically.

TDS Nature of Payments

• Threshold limit – Ensure the Purchase or Payment value exceeds the defined exemption limit; otherwise, TDS will not apply. To learn how to configure the TDS Nature of Payments, refer to TDS Nature of Payment.

TDS Applicability

• Expense or Purchase Ledger – Verify that TDS is enabled and correctly configured in the ledgers. To learn how to configure ledgers for TDS calculation, refer to Ledger.
• Party Master – Ensure the party is marked with TDS applicability and has valid PAN details. To learn how to configure the Party Master for TDS calculation, refer to Party Ledger.
• Duty Master – Ensure that the correct TDS Nature of Payment is selected in the Duty Master. To learn how to configure the Duty Ledger for TCS calculation, refer to TDS Ledger.

Ensure the TDS Nature of Payments is applicable and consistent across all these masters.  Also, if TDS NOP is overridden at the transaction level, ensure that the correct NOP is selected.

TDS may be deducted at a higher rate if the party’s PAN is not available in the Party Master. To ensure TDS is calculated at the correct rate, update the party’s PAN details in the Party Ledger. To learn how to configure the Party Master for TDS calculation, refer to Party Ledger.