How to Enable TDS in Tally ERP9 | Chapter-7

How to Enable TDS in Tally ERP9

1.   Go to Gateway of Tally > F11: Features > Statutory & Taxation

2.   Set Enable Tax Deducted at Source (TDS) to Yes in the Company Operations Alteration screen as below :

How to Enable TDS in Tally ERP9

3. Enable the option Set/alter TDS details ? to display TDS Deductor Details screen as below :

How to Enable TDS in Tally ERP9

Please enter all details in Company TDS Deductor Details as above.

Press F12 : Advanced Configure in above Screen for  Configure TDS as below :

How to Enable TDS in Tally ERP9
  • All the organization types will appear in the Collector/Deductor Type list for the option Deductor Type
  • All Surcharges details applicable to TDS will be enabled in the second option
  • The Third Option is to enable the display of the alternate contact details of TDS

2. Creating 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. Few Examples are given below …

SectionNature of PaymentTDS Rate
192SalariesAverage Rate Applicable
194IRent on Plant and Machinery2%
194IRent on Land, Building, Houses, Offices etc.10% by Company in excess of Rs.2,40,000
5% by Individual . HUF, Businessman in excess of Rs.50,000
194CPayment to Contractor / Sub-contractor1%
194DInsurance Commission5%
194DAPayment in respect of life insurance policy1%
194EEPayment in respect of Deposit under NSS10%
194HCommission or Brokerage5%
194JSum paid by way of Fees for Professional Services10%

While creating a TDS Nature of Payment, you can press Ctrl+C to select the required nature of the payment.

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

2.    Press F12. Set Allow to PAN tax rate to Yes, to enter the tax rates for Individual / HUF for each nature of payment.

How to Enable TDS in Tally ERP9

3.    Press Ctrl+C to view the list of Nature of Payment and Select the required Nature of Payment.

How to Enable TDS in Tally ERP9-2

4.    Enter the Rate of TDS for With PAN and Without PAN . The same appears in Rate for other deductee types .

5.    Enter the Threshold/exemption limit as applicable .

How to Enable TDS in Tally ERP9-1

6.    Press Enter to save the details.

How to Enable TDS in Tally ERP9

For any query or complaint mail at [email protected]

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