https://help.tallysolutions.com/docs/te9rel65/Tax_India/tds/changes_in_finance_bill_2_tds.htm

Changes as per Finance Bill No. 2 of 2019-20 (TDS)

You can update the revised TDS rate of 5% for Payment in Respect of Life Insurance Policy , and create new TDS nature of payments for Section 194M and 194N . While recording TDS transactions, the TDS amount will be deducted as per the Rate and Threshold/exemption limit defined in the TDS Nature of Payment .

On this page

Payment in Respect of Life Insurance Policy

TDS Nature of Payment for Section 194M and 194N

Payment in Respect of Life Insurance Policy

You can update the revised TDS rate of 5%, effective from 1st September 2019 in the TDS Nature of Payment .

1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > TDS Nature of Pymts > Alter .

Note: If you are creating this, press Ctrl+C to view the list of Nature of Payment .

2. Select Payment in Respect of Life Insurance Policy .

3. Click L : Details .

4. Enter the applicability date with the TDS details. If this nature of payment already exists prior to 1st September 2019, provide the details in a separate row, as shown below:

Note: Do not change the TDS details entered until 31st August 2019. Enter the changes applicable from 1st September 2019 in the next row.

The revised TDS rate appears for Payment in Respect of Life Insurance Policy , as shown below:

5. Press Enter to save.

TDS Nature of Payments for Sections 194M and 194N

Two new TDS nature of payments have been introduced under sections 194M and 194N . The names of these nature of payments and the provision to make payments towards these, are not yet available on the department portal. Hence, while creating these nature of payments in Tally.ERP 9, you need to manually enter the name, section code and leave the Payment code field blank.

‚óŹ Go to Gateway of Tally > Accounts Info. > Statutory Info. > TDS Nature of Pymts > Create .

In this section

Payment of certain sums by certain individuals or HUF (as provided in Finance Bill No. 2 of 2019-20)

Payment of certain amounts in cash (as provided in Finance Bill No. 2 of 2019-20)

Payment of certain sums by certain individuals or HUF

1. Enter a Name for the new TDS nature of payment under section 194M .

2. Enter the TDS Rate of 5% and Threshold/exemption limit of 50,00,000 .

3. Press Enter to save.

Note: As Payment code is not defined for this TDS Nature of Payment , the same will not be printed in ITNS Challan 281 .

Payment of certain amounts in cash

1. Enter a Name for the new TDS nature of payment under section 194N .

2. Enter the TDS Rate of 2% and Threshold/exemption limit of 1,00,00,000 .

3. Press Enter to save.

Note: As the Payment code is not defined for this TDS Nature of Payment , the same will not be printed in ITNS Challan 281 .