Introduction to Tax Deducted at Source (TDS)
1. What is Tax Deducted at Source (TDS)?
TDS (Tax Deducted at Source) is an indirect collection mechanism of Income Tax under the Income Tax Act, 1961. The person or entity making specified payments (such as professional fees, rent, commission, contractor payments) is required to deduct tax at source and remit it to the Central Government.
Core Rule: "Pay as you earn" — Tax is collected at the very point where the income is generated for the payee.
Tally Prime With Tax Deducted At Source (TDS)
Module Progress: 1 of 11 Topics (9%)
9%
- Introduction to Tax Deducted at Source (TDS)
- TDS Sections, Threshold Limits & Rates
- TDS Deductor, Deductee & TAN Structure
- Enabling TDS in Company Features (F11)
- Creating TDS Nature of Payments
- Configuring TDS in Expense & Party Ledgers
- Booking Expenses & Deducting TDS in Journal/Purchase
- Handling TDS Exceptions & PAN Missing Cases
- TDS Deduction on Advance Payments
- Payment of TDS to Government (Challan ITNS 281)
- TDS Reports & Form 26Q Return Preparation