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Create TDS Nature of Payment

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.

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TDS Nature of Payment

Create sub-section for TDS Nature of Payment Section 194J

TDS 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:

Create sub-section for TDS Nature of Payment Section 194J

The section 194J corresponding to Fees for Professional and Technical Services has been divided into 2 sub-sections, Fees for Technical Services (other than Professional Services) or Royalty and Fees for Professional Services , with payment codes 4JA and 4JB respectively. This change has been implemented in FVU (File Validation Utility) ver 6.8. You can create the nature of payments for these sub-sections in Tally.ERP 9 manually and use them for your TDS undertakings.

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

2. Enter the name of the sub-section as Fees for Professional Services . You can give your own name but ensure that the section code and payment code are selected correctly.

3. Select Section as 194J and Payment code as 4JB .

4. Press Ctrl+A to accept.

Similarly, you can create nature of payment for the other sub-section as shown below: