Enabling TDS

Tax Deducted at Source (TDS), was introduced in the Income Tax Act, 1961, to deduct tax on income, from the source of income. To get started, you have to enable the Tax Deducted at Source (TDS) module in Tally.ERP 9 and enter your company's registration details.

1. Go to Gateway of Tally > F11: Features > Statutory & Taxation .

2. Set Enable Tax Deducted at Source (TDS) to Yes in the Company Operations Alteration screen.

3. Enable the option Set/alter TDS details to display TDS Deductor Details screen.

4. Enter the TAN registration number .

5. Enter the Tax deduction and collection Account Number (TAN) .

6. Select the Deductor Type .

7. Enter Deductor branch/division .

8. Enable the option Set/alter details of person responsible to display the Person Responsible Details screen. Enter the relevant details:

Note: In Release 6.5.5 and later versions, you can enable the TDS features for a company located in Ladakh . You can select the State as Ladakh in the Person Responsible Details screen.

9. Press Enter . The TDS Deductor Details screen appears.

10. Enter the Rate of TDS if PAN not available .

11. Enable the option Ignore IT Exemption Limit for TDS Deduction? , if required.

12. Enable the option Activate TDS for stock items if required.

13. Press Enter .

14. Press Ctrl+A to save the details.