TAX DEDUCTED AT SOURCE

To enable TDS in Tally

1) Press F11 – to open ‘Company Feature’
2) Choose ‘Statutory and Taxation’
3) ‘Enable Tax Deducted at Source’ – set it yes
4) ‘Set Alter TDS’ – set it yes and fill the required fields which will come thereby
5) Put PAN no. and Save it by Pressing CTRL+A

Ledgers to be created for TDS

1) Sundry Creditors – (i.e. pary A/c. which will receive the payment)- don’t forget to enable TDS
option.
2) Indirect or Direct Expense (i.e. the ledger for the payment will be made, e.g. Rent, Salary, or
Carriage inwards or outwards etc.)
3) TDS – Duties and Taxation ( Actual Tax ledger)
4) Bank A/c. – From which the payment will be made

Vouchers of TDS
1) Journal (F7) – Indirect or Direct Expense A/c ……………….. Dr., To Party A/c. , To TDS A/c. (please
provide amount higher than thrash hold amount)
2) Payment (F5) – Party A/c. ………..Dr., To Bank A/c. (Amount will be without TDS Amount)
3) To pay TDS – Go to ‘Display’ Statutory ReportTDS Report  Form 26Q  press ALT-S (to
start payment TDS)