Accounting Treatment of TDS in Tally.ERP 9

First of all, I want to tell that in Income tax Law 1961, TDS is the way of collecting tax from assessee. TDS is deducted by the person who pays to other certain amount which is mention in TDS sections. So, learn its accounting procedure or accounting treatment and journal entries in Tally.ERP 9.

There are two way of accounting treatment of TDS in Tally 9 or Tally.ERP 9 . I am writing both the way of accounting treatment and effect of it is same .

Automatic Way

Following are the simple steps for Accounting treatment , Voucher entries and return making of TDS in Tally.ERP 9 .

First Step

First of all go to Tally 9 Gateway Press F11 and go to Statuary & Taxation and Set Enable TDS as YES.

Second Step

i) Then create a Ledger account in the name of TDS Account under the group Duties & Taxes (Under C. liabilities).

ii) Type of Duty or Tax select as TDS

iii) Nature of Payment- for example you can select Payment of rent on buildings

iv) Ignore TDS Exemption limit- YES/ No

Third Step

(i) Then create another ledger account. For example create YZ. Company under the group of S.Creditors (job work).

(ii) Maintain Bill by Bill- YES.

(iii) Is TDS Applicable- write → YES Enter TDS details like Deductee type- whether Individual or Company. Then fill the required items.

Fourth Step

Then create another ledger account of rent account under indirect expenses.

Fifth Step

(i)Enter the transaction in Journal voucher.

Rent A/c. Dr.→ Rs 140000

YZ co. A/c. Cr. → Rs. 118370

TDS A/C Cr. → Rs. 21630

( Tally will select only one transaction TDS amount automatically , if not activate then calculate yourself and write )

Sixth Step

Then Payment entry ( Write same amount of TDS which is calculated by Tally )

TDS A/c Dr. → Rs 21630

To. Bank A/c. Cr. →Rs. 21630

After this you can see the status report in computation of TDS

Gate way of tally >> Display >> Statutory reports >> TDS Report >> Computation

You can also print TDS return directly from TDS reports .

Manual Way

First Step

In Gateway F11 set TDS as No and in XYZ co. TDS applicable- NO.

You enter every transaction in Purchase a/c in Voucher mode not Invoice mode.

Second Step

Calculate the TDS manually suppose it is Rs. 21630 on rent payment of Rs. 140000 (See update amendments of Income Tax Law relating to TDS provisions)

Then after creating normal ledger of party , rent and TDS accounts the following entry will pass

Rent account Dr. → 140000

YZ company Account Cr. → 118370

TDS Account Cr. →21630

( Exempt TDS if payment is not more than 120000 , if more then 10% of payment )

Third Step

At the end of month , Pass the Voucher entry of payment of TDS which is calculated by you in payment voucher .

TDS Account Dr. →21630

Bank Account Cr. →21630


Comments on this Website: 12






access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
Accounting Education: Accounting Treatment of TDS in Tally.ERP 9
Accounting Treatment of TDS in Tally.ERP 9
Accounting Education
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock