How to enable Tax Deducted at Source (TDS) in Tally ERP 9

Tax Deducted at Source is one of the modes of collecting Income Tax from the taxpayers as per the rates mentioned under IT Act and Rules. The deductor of the Tax (TDS) deducts the tax from the deductee, on payment of specified Incomes and deposits the same to the credit of central Government within the specified period alongwith the challan in prescribed format.

Tally.ERP 9’s TDS feature is designed to handle all your TDS requirements easily and with complete flexibility. It allows you to configure the TDS ledgers, by specifying the nature of

payments and type of assessee along with the TDS rates. 

With the help of Tally.ERP 9, you can generate and file Quarterly/Monthly Returns, Challans viz., Form16 A and Certificates in prescribed formats. You can also generate e-TDS and file in NSDL compatible formats.

Activate Tax Deducted at Source (TDS)

To activate TDS in Tally.ERP 9, follow the steps given below :

Go to Gateway of Tally > F11: Features > F3: Statutory & Taxation

• Set Enable Tax Deducted at Source to Yes
• Enable Set/Alter TDS details to Yes

The Company TDS Deductor Details appears

• Specify the TAN Number, IT Circle, Deductee Type and other details
• Save screen

Specify PAN/Income Tax No.

Save F11: Statutory & Taxation screen