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  Tally Prime calculates the tax of all parties/suppliers where TDS deduction is mandatory. It calculates the TDS automatically and prints Form16A certificates, Forms 26Q, 26, 27 and 27A (Cover Note) for Quarterly / Annual Returns as per statutory requirement It allows the user to view and print various TDS reports, Challans and TDS Outstanding statements.   Important TDS Section List   Example of TDS Let’s assume that a start-up company pays Rs. 50,000 as rent every month to whoever owns the property. The TDS applicable to the amount is 10%, so the company must subtract Rs. 5,000 and pay Rs. 45,000 to the property owner. In this case, the owner of the property will receive Rs. 45,000 following TDS. The owner can add the gross amount of Rs. 50,000 to his income, thereby allowing him to take credit for the Rs. 5,000 that has already been deducted by the company. Types of TDS Here are some of the income sources that qualify for TDS: • Salary • Amount under LIC • Bank Interest • Brokerage or Commission • Commission payments • Compensation on acquiring immovable property • Contractor payments • Deemed Dividend • Insurance Commission • Interest apart from interest on securities • Interest on securities • Payment of rent • Remuneration paid to the director of a company, etc • Transfer of immovable property • Winning from games like a crossword puzzle, card, lottery, etc.   Step 1 Enable TDS by Press F11 key   Step 2 Company TDS Diductor Details   Step 3 Create TDS Nature of Payment GOT >> Create >> TDS Nature of Payment   Step 4 Create Following Ledger   Ledger Creation – TDS on Salary   Ledger Creation – Salary   Ledger Creation – Suraj Kumar   Step 5 Pass Journal Ledger  

Local purchase / sales is the movement of Goods and service within the state that is intra – state is called local purchase / sales. Step 1 Press F11 From You Computer Key For Enable It.   Step 2 :- Fill GST Details, Here You Have To Fill You Company GST Details Such As : GST No, State Note :- Set / Alter GST Rate Details Yes     Step 3 :- Create IGST Ledger   Step 4 Create Stock Item   GST details for Stock Item   Step 5 Purchase Voucher  with IGST  

Local purchase / sales is the movement of Goods and service within the state that is intra – state is called local purchase / sales. Step 1 Press F11 From You Computer Key For Enable It.   Step 2 :- Fill GST Details, Here You Have To Fill You Company GST Details Such As : GST No, State Note :- Set / Alter GST Rate Details Yes   Step 3 :- Create IGST Ledger   Step 4 Create Stock Item   GST details for Stock Item   Step 5 Sales Entry with IGST   Assignment  

Local purchase / sales is the movement of Goods and service within the state that is intra – state is called local purchase / sales. Step 1 Press F11 From You Computer Key For Enable It.   Step 2 :- Fill GST Details, Here You Have To Fill You Company GST Details Such As : GST No, State Note :- Set / Alter GST Rate Details Yes   Step 3 :- Create Following Ledger   CGST Ledger Creation   SGST Ledger Creation   Step 4 Create Stock Item   GST details for Stock Item   Step 5 Sales Entry with GST SGST-CGST   Assignment    

Local purchase / sales is the movement of Goods and service within the state that is intra – state is called local purchase / sales. Step 1 Press F11 From You Computer Key For Enable It.   Step 2 :- Fill GST Details, Here You Have To Fill You Company GST Details Such As : GST No, State Note :- Set / Alter GST Rate Details Yes   Step 3 :- Create Following Ledger   CGST Ledger Creation   SGST Ledger Creation   Step 4 Create Stock Item   GST details for Stock Item   Step 5 Purchase Voucher   Assignment  

TCS Full Form Is Tax Collected at Source, TCS is tax that is payable by the seller, which is collected from the buyer. In This Post You Will Learn “How To Record TCS Tax Transaction In Tally Prime Step By Step Guide. TCS Rate and Section 206C of the Income Tax Act Mention? Section 206C of the Income Tax Act, 1961 covers goods on which sellers must collect TCS (Tax Collected at Source) from their purchaser. However, it is only applicable for specified goods. It includes scrap, alcohol for human consumption, forest produce, minerals like coal and iron ore, timber, and tendu leaves. Step 1 Enable TCS In Tally Prime By Press F11 Key   Step 2 Set TCS Details As  Enable Tax Deducted At Source (TDS), Here Fill These Details Like This Tan No: PDES03028F Tax Deduction and Collection A/c No: ABCD12345E Deductor Type: Company   Step 3. Create “TCS Nature Of Goods Scrap Gateway Of Tally >> Create >> TCS Nature Of Goods >> Create   Step 4. Create Following Ledger Gateway Of Tally >> Create >> Ledger 1. Shubham Pvt Ltd Under Sundry Debtor 2. TCS On Sale Under Duties and Taxes 3. Sales A/c Under Sales Account 1. Shubham Pvt Ltd Under Sundry Debtor 2. TCS On Sale Under Duties and Taxes 3. Sales Ledger Creation Sales A/c Step 5. Pass Sales Voucher Gateway Of Tally >> Vouchers >> Sales

TCS Full Form Is Tax Collected at Source, TCS is tax that is payable by the seller, which is collected from the buyer. In This Post You Will Learn “How To Record TCS Tax Transaction In Tally Prime Step By Step Guide. TCS Rate and Section 206C of the Income Tax Act Mention? Section 206C of the Income Tax Act, 1961 covers goods on which sellers must collect TCS (Tax Collected at Source) from their purchaser. However, it is only applicable for specified goods. It includes scrap, alcohol for human consumption, forest produce, minerals like coal and iron ore, timber, and tendu leaves.   Step 1 Enable TCS In Tally Prime By Press F11 Key   Step 2 Set TCS Details As  Enable Tax Deducted At Source (TDS), Here Fill These Details Like This Tan No: PDES03028F Tax Deduction and Collection A/c No: ABCD12345E Deductor Type: Company   Step 3 Alter Current Assets Group Gateway of Tally > Alter > Voucher Type > Current Assets Use for calculation (Tax , Discount): Yes   Step 4 Create Following Ledger Gateway Of Tally >> Create >> Ledger 1. TCS On Purchase Under Current Assets 2. SKB PVT Ltd Under Sundry Creditor 3. Purchase A/c Under Purchase Account   1. TCS On Purchase Under Current Assets Percentage of Calculation : 3% Method of Calculation: On Total Sale   Step 5 Now Pass Purchase Voucher Like this Include TCS On Purchase Ledger Gateway Of Tally >> Vouchers >> Purchase      

TDS stands for Tax Deducted at Source. It is one of the most important concepts in accounting, taxation, and finance. TDS means deducting tax before making payment to someone. It is collected by the payer (also called deductor) and paid to the Income Tax Department on behalf of the payee (person receiving the income).   Example: You hired a consultant and you have to pay ₹50,000 for their services. According to tax law, you need to deduct 10% TDS (₹5,000) before paying them. You pay ₹45,000 to the consultant. You deposit ₹5,000 with the government as TDS. This way, tax is collected in advance and reported to the government.   Types of TDS Here are some of the income sources that qualify for TDS: Salary Amount under LIC Bank Interest Brokerage or Commission Commission payments Compensation on acquiring immovable property Contractor payments Deemed Dividend Insurance Commission Interest apart from interest on securities Interest on securities Payment of rent Remuneration paid to the director of a company, etc Transfer of immovable property Winning from games like a crossword puzzle, card, lottery, etc.   Basic Concepts of TDS Deductor and Deductee Deductor: Person who deducts TDS (payer) Deductee: Person who receives payment (payee) TAN (Tax Deduction Account Number) – A 10-digit number required by anyone who deducts TDS. It is mandatory for filing TDS returns. PAN (Permanent Account Number) – The deductee must provide PAN; otherwise, TDS is deducted at a higher rate (usually 20%). Threshold Limit – If the total payment during the year is below a certain limit, TDS is not applicable. Each type of payment has a different threshold. Common Sections of TDS Section Nature of Payment Rate of TDS Threshold Limit 192 Salary Slab-based As per salary 194C Contractor Payments 1%/2% ₹30,000 per bill 194J Professional Fees 10% ₹30,000 per year 194I Rent 10% ₹2,40,000 per year 194H Commission/Brokerage 5% ₹15,000 per year How TDS Works Check if TDS is applicable – Look at the type of payment and the amount. Deduct TDS – Calculate and deduct TDS at the correct rate. Pay TDS to the Government – Use Challan ITNS 281 to deposit TDS. File TDS Returns – Every quarter, the deductor must file TDS return (Form 26Q or 24Q). Issue TDS Certificate – Give Form 16 or Form 16A to the deductee.   TDS on Salary (Section 192) – FY 2025–26 TDS on salary is not fixed like other sections (e.g., 10%, 1%, etc.). Instead, it is calculated based on the applicable income tax slab rates of the individual employee for the financial year. Applicable Slab Rates – FY 2025–26 (For Individuals Below 60 Years) Old Regime (with deductions like 80C, HRA, etc.) Income Slab Tax Rate Up to ₹2,50,000 Nil ₹2,50,001 – ₹5,00,000 5% ₹5,00,001 – ₹10,00,000 20% Above ₹10,00,000 30% New Regime (without most deductions but lower rates) Income Slab Tax Rate Up to ₹3,00,000 Nil ₹3,00,001 – ₹6,00,000 5% ₹6,00,001 – ₹9,00,000 10% ₹9,00,001 – ₹12,00,000 15% ₹12,00,001 – ₹15,00,000 20% Above ₹15,00,000 30% Employees can choose between the old and new tax regime each year (by declaration to the employer). How TDS on Salary is Calculated? TDS under Section 192 is calculated as: TDS = Total Income Tax Liability (as per slab) / Number of months of employment It also considers: Deductions claimed (if under old regime) HRA, Standard Deduction, Investments Previous employer income (if applicable) Rebate under Section 87A (if total income ≤ ₹5 lakh under old regime or ≤ ₹7 lakh under new regime) Example: Employee annual salary: ₹6,50,000 Tax regime: New Standard deduction: ₹50,000 Taxable income = ₹6,00,000 Tax = 5% on ₹3,00,000 = ₹15,000 Rebate under 87A = ₹15,000 So, TDS = Nil   Due Dates for E-Filing of TDS Return AY 2023-24   Who Is Required To Deduct TDS? TDS applies in the following scenarios: Professional service fees Fees for technical services Remuneration is paid to directors that do not come under ‘salary.’ Royalty Payments in the form of non-compete fees or fees paid to not share any technical expertise.   What are ‘Professional’ and ‘Technical’ Services? Professional services under Section 194J imply any service in the following fields: • Medical • Legal • Engineering • Architectural profession • Accountancy • Technical consultancy, or • Interior decoration   Professional services mentioned in section 44AA: • Film artist • Authorised representative • Company Secretary   Professional services related to sports activities: • Anchors • Commentators • Event managers • Physiotherapists • Referees and umpires • Sports persons • Sports columnists • Trainers and coaches   Filing TDS Returns TDS must be deposited with the government and a quarterly TDS return on form 26Q must be made.   Simple Assignments with Solutions   Assignment 1: Calculate TDS You paid a contractor ₹1,20,000 during the year. TDS rate is 1%. Calculate how much TDS to deduct and journal entry. Answer: TDS = 1% of ₹1,20,000 = ₹1,200 Net Payment = ₹1,18,800 Journal Entry: Contract Expense A/c Dr. ₹1,20,000 To TDS Payable A/c ₹1,200 To Bank A/c ₹1,18,800   Assignment 2: No TDS Scenario You paid ₹20,000 as rent to a landlord. TDS is applicable only if total rent exceeds ₹2,40,000 in a year. Should you deduct TDS? Answer:No. Since annual payment is below ₹2,40,000, TDS is not applicable. Assignment 3: TDS with No PAN You paid ₹40,000 to a professional who did not provide PAN. What is the TDS rate? Answer:As per Section 206AA, if PAN is not available, TDS is deducted at 20%. TDS = 20% of ₹40,000 = ₹8,000 Net payment = ₹32,000