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.

To enable TDS

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.

The Company Operations Alteration screen appears as shown below:

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 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.

o Enter the details as shown below:

o Press Enter .

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

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

11. Enable the option Activate TDS for stock items? , if required.

The TDS Deductor Details screen appears as shown below:

12. Press Enter .

13. Press Ctrl+A to save the details.