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TDS in Tally ERP 9 with GST

TDS in Tally ERP 9 with GST

What is TDS ?

TDS stands for ‘Tax Deducted at Source’. It was introduced to collect tax at the source from where an individual’s income is generated.

As per the Income Tax Act – persons responsible for making payments are required to deduct tax at source at prescribed rates. Instead of receiving tax on your income from you at a later date, the govt wants the payers to deduct tax before hand and deposit it with the govt.

The recipient of income receives the net amount (after deducted of tax at source). The recipient will add the gross amount to his income and the amount deducted at source is adjusted against his final tax liability. Basically take credit of the amount already deducted and paid on his behalf.

TDS is deducted at the time of payment in cash or cheque or credit to the payee’s account whichever happens earlier.

TDS is not applicable to all incomes and persons for all transactions. Different rates of TDS have been prescribed by the Income Tax Act for different payments and different categories of recipients. For example, payment of redemption proceeds by a debt mutual fund to a resident individual is not subject to TDS but for a Non-resident Indian is subject to TDS.

What is Tan Number

TAN stands for Tax Deduction and Collection Account Number. It is a ten digit alphanumeric number thats allotted to those who are supposed to deduct tax at source or TDS. TAN number or TAN registration is very important for businesses deducting tax at source and is required to be quoted in TDS or TCS return.

What is TDS Certificate?

TDS certificates are issued by the deductor (the person who is deducting tax) to the deductee (the person from whose payment the tax is deducted). There are mainly two types of TDS certificates issued by the deductor.

  • Form 16: which is issued by the employer to the employee incorporating details of tax deducted by the employer throughout the year, and
  • Form 16A: which is issued in all cases other than salary.

For example: Mr. Gupta is working as a salaried employee at a company and tax is deducted on his salary @ 15%. The company shall provide Mr. Gupta with a Form 16 describing particulars in detail regarding the amount of salary paid and tax deducted on the same.

However, had Mr. Gupta been working as a professional and received professional fees from an organization which is subject to TDS, then he will be provided Form 16A for the same.

 

Rates Under TDS

Rates of TDS

 

Section and nature of Payment TDS rate for Individuals/HUf

(Indian residence)

TDS Rate for Non Residents in India
Section 192 Salaries Average rates as applicable Average rates as applicable
Section 192 A Payment of accumulated balance due to an employee 10% 10%
194I Rent on plant and machinery 2% NA
194I Rent on land, building, houses, offices, flats, residential apartments, furniture and fittings

Plant and machinery

Land or building or furniture or fittings

10% in case of payment by companies in excess of Rs. 240,000 per annum

5% – From 1st June 2017, in case of payment by individuals, HUF and businessmen in excess of Rs. 50,000 per month

NA
193 Interest on Securities 10%` NA
194 Dividend 10% NA
194A Interest other than “Interest on securities” 10% NA
194B Interest by way of winning from lotteries, crossword puzzles, games etc. 30% 30%
194bb Income by way of winning from horse race 30% 30%
194C payment to contractor subcontractor 1% NA
194d Insurance commission 5% NA
Rates of TDS

 

Section and nature of Payment TDS rate for Individuals/HUf

(Indian residence)

TDS Rate for Non Residents in India
194 DA Payment in respect of life insurance policy 1% NA
194E Payment to non- resident sports association NA 20%
194EE Payment in respect of deposits under National Savings Scheme 10% 10%
194F Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20% 20%
194G Commission etc. on sale of lottery 5% 5%
194H Commission or brokerage 5% NA
194I A Payment on transfer of certain immovable property other than agricultural land 1% NA
194 J Sum paid by way of fees for Professional Services 10% NA
194 L A Payment of compensation on acquisition of certain immovable property 10% NA
194 LB Payment of interest on infrastructure debt fund NA 10%
Section- 194LBA(1) Business trust shall deduct tax while distributing, any interest received by it from SPV or from renting or leasing out any real estate asset owned by it

 

10% NA
Section- 194LBA(2) Business trust shall deduct tax while distributing any interest received by it from SPV to its unit holders NA 5%
Section- 194LBA(3) Business trust shall deduct tax while distributing any income received by it from renting or leasing out any real estate asset owned directly by it to its unit holders

 

NA 30%
Section- 194LBB Investment fund paying an income to a unit holder NA 5%
Section- LBC Income in respect of investment made in securitization trust individuals25%

30% HUF

30%
Section- LC Payment of interest by an Indian Company in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds Na 5%
Section- LD Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or Qualified Foreign Investor including long term infrastructure bonds NA 5%

Payment and Due date under TDS

Tax Deducted at Source (TDS) came into the picture so that the Income Tax Department does not miss out on the tax revenue collection. Under TDS, the deductor is responsible to pay the TDS to the department. This is done so that even if the deductee doesn’t report the income, the tax amount is still available to the department.

TDS DEDUCTED IN  MONTH DUE DATE FOR NON-GOVERNMENT DEDUCTOR DUE DATE FOR GOVERNMENT DEDUCTOR
April to February On the date of Deduction

OR

On or before the 7th working day of next month

Same day (in case of payment through Transfer voucher)

On or before the 7th working day of next month (in case of payment through Challan)

TDS on Perquisites (If the deductor opts to deposit the TDS)

 

On or before the 7th working day of next month (Payment has to be through challan only)

March April 30th Normal TDS

Same day (in case of payment through Transfer voucher)

April 7th (in case of payment through Challan)

TDS on Perquisites (If the deductor opts to deposit the TDS)

April 7th

 

Returns Under TDS

Different forms have been prescribed for filing returns, depending on the intent of the TDS deduction. Details like PAN of the deductor and deductees, particulars of tax paid to the government and TDS challan information, among other things, can be found in the statements.

Forms Particular
Form 24Q Quarterly statement for tax deducted at source from “Salaries”
Form 26Q Quarterly statement of tax deducted at source in respect of all payments other than “Salaries”
Form 27Q Quarterly statement of deduction of tax from interest, dividend or any other sum payable to non-residents
Form 27EQ Quarterly statement of collection of tax at source

 

TDS RETURN DUE DATE

QUARTER TIME TDS RETURN DUE DATE
1st Quarter 1st  April to 30th June 31st  July 2018
2nd  Quarter 1st July to 30th September 31st  October 2018
3rd Quarter 1st  October to 31st December 31st  January 2019
4th  Quarter 1st  January to 31st March 31st May 2019

 

Tally ERP 9 with TDS  GST

  • Go to the gateway of tally >F11> Company features > Statutory and Taxation
  • Set the option to enable tax deducted at source (TDS) to YES
  • Enable the options set/alter TDS details to YES
  • the company statutory and taxation screen appears
  • Press enter and  you will get the company TDS deductor Details screen to provide the details as given below
  • Enter the TAN registration number as TAN as ASDF12456D
  • Enter deductor type as company
  • Enter deductor branch/division as Dehradun Branch
  • Disable the options set/Alter details of the person responsible
  • In the Rate TDS if PAN not available field by default tally capture 20% as per the IT norms
  • disable the option Ignore IT exemption limits for TDS deduction to ignore the IT exemption limit
  • Diable the option activate TDS for stock item

TDS deductor screen

the complete statutory and taxation features screen appears

 

TDS statutory Masters

The statutory master contain details with respect to TDS nature of payment deducted types rate of TDS for each nature of payment and period of applicability .These

 

 

 

Updated: August 8, 2019 — 7:39 am

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