Party Ledger (TDS)

TDS will be deducted on the basis of the deductee type, which has to be defined in the party ledger.

1. Go to Gateway of Tally > Accounts Info. > Ledgers > Create

2. Press F12 and set the option Allow advanced entries in TDS masters to Yes .

3. Enter the Name and select Sundry Creditor in the Under field.

4. Enable the option Maintain bill-by-bill , to track the TDS bills.

5. Enable the option Is TDS Deductible , to allow TDS deduction for the ledger.

6. Select a Deductee Type from the list.

7. Enable Deduct TDS in Same Voucher , if required, and select the TDS Nature of Payment. You can also select to All Items .

8. Set Use Advanced TDS Entries to Yes .

● You can set the ledger to ignore income tax and/or surcharge exemption limits.

● Enable the option Set/Alter Zero/Lower Deduction to Yes .

● If the Deductee type is a Resident , you can set the required Nature of Payment for Zero/Lower Rate , as shown below:

Based on the selection made, the transactions recorded using these ledgers will appear in the relevant sections of Form 26Q .

● If the Deductee type is a Non-Resident , you can set the required Nature of Payment for Zero/Lower Rate/DTAA , as shown below:

Based on the selection made, the transactions recorded using these ledgers will appear in the relevant sections of Form 27Q .

9. Enter the Mailing Details . Enable Provide Bank Details , to enter the bank details for the ledger.

10. Enter the PAN/IT No. under Tax Information .

11. Enable the option Provide PAN Details , if required.

The Ledger Creation screen appears as shown below:

12. Press Enter to save the details.