Lower Deduction of TDS in Tally | How to manage
TDS is in tally.erp 9 is the biggest helping hand for me as it help me to avoid manual work relating to TDS compliance. Since entire system in tally.erp 9 relating to TDS is automated all you need is to make some one time set up for enable TDS in tally.erp 9 and then just concentrate your attention only towards making entries. Your tally.erp 9 will take care of TDS calculation, TDS return, Form no. 16a and every aspect relating to TDS including automated payment challan for TDS. If you are not aware of TDS features in tally then you should referTDS help file for further reference
One more interesting feature available in tally.erp 9 is to manage lower deduction TDS rates for certain suppliers
By virtue of Section 197/197A an assesses can get a certificate of lower deduction from the ITO.
Such certificate will include your TAN number, Assesses PAN Number, Period of applicability, approx. billing amount to you during the period and the % of TDS by which you should deduct TDS on the same.
Let’s assume one of your supplier presents you such a certificate of lower deduction of tds at a rate of 6%, then you must deduct the same as per the certificate produced to you.
Let’s learn how to manage the same in tally.erp 9. Once you make the settings as per below then whenever you book the invoice of such supplier then TDS will be calculated and deducted from the bill automatically at the rates specified as per the lower Deduction certificate
Go to related supplier’s ledger who produced you the lower deduction certification
Set yes to Is tds applicable ?
Then set advance entries in tds through F12 configuration
select deductee type from the list
use advanced tds entries set to yes
You will find a pop up as per below
then go to alter Zero/lowder deduction to yes
you will find below screen
here select the Nature of payment applicable from the pop up window list
set section number (it will be shown in the lower deduction certificate
mention necessary details
If you have any query, then please post it on support forum only.