For payments attracting TDS, the relevant nature of payment is defined by the department with associated tax rate, section, payment code, and threshold limit. While creating a TDS Nature of Payment, you can press Ctrl+C to select the required nature of payment.
1. Go to Gateway of Tally > Accounts Info. > Statutory Info. > TDS Nature of Pymts > Create .
2. Press F12 .
● Set Allow transporter category to Yes , to capture the value of transaction recorded with party having PAN, under Exempt in lieu of PAN available in Form 26Q .
● Set Allow no PAN tax rate to Yes , to enter the tax rates for Individuals/HUF for each nature of payment.
Note: This option was earlier available in company TDS configuration screen of F11 > F3 . To provide the flexibility to define 'No PAN' tax rate for each nature of payment, it is now available here.
● Press Enter to save.
3. Press Ctrl+C to view the list of Nature of Payment .
4. Select the required Nature of Payment . The Section and Payment code are displayed automatically.
5. Enter the Rate of TDS for With PAN and Without PAN . The same appears in Rate for other deductee types .
6. Enter the Threshold/exemption limit as applicable .
7. Press Enter to save the details.
To view the history of Rate and Exemption Limit Details provided for different dates, press Alt+L ( Details ). The details will appear with the breakup of rate With PAN and Without PAN as shown below:
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