A Deductee (other than Company or Firm) can submit a declaration in Form 15G under sub section (1) of section 197A, for TDS deduction at Zero Rate. Declarations can be given only by those deductees whose income is below the taxable limit and the income falls under section 193, 194, 194A, 194EE and 194K.
The certificate granted shall be valid for the assessment year specified and is valid only for the person named therein.
Scenario: On 25-5-21-015, ABC Company received a bill from Gokul Co-operative Building Society for Rs. 10,00,000 towards Rent on Building and Furniture. Gokul Co-operative Building Society has a certificate for non-deduction (zero rate) of Income tax on Rent.
To record expenses in the journal voucher
1. Go to Gateway of Tally > Accounting Voucher > F7: Journal.
2. Click F2: Date to change the date to 25-5-2015 .
3. Debit the Rent expense ledger.
4. Enter 1000000 in the amount field.
5. Credit Gokul Co-operative Building Society .
6. Press Enter .
7. Enter the Bill-wise Details , as required.
8. Press Enter .
9. Enter Narration , if required.
The Journal voucher appears as shown below:
10. Press Ctrl+A to save the voucher.
In the text file generated as per File Validation Utility (FVU) version 5.6, the letter B appears as remarks for transactions recorded at lower or zero deduction for TDS nature for all the Nature of Payments under section 194J .