222

$show=home

Welcome to Accounting Education

The Free Online University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Why Accounting Education Important


Free
Simple
Have Quality Study Material
Taught by Expert

Connect Vinod Kumar (Educator)

Why Accounting Education Volunteer


Free training
It's educational
It's fun
It helps others

Become Volunteer Teacher

Journal Entries of TDS


TDS means tax deducted at source. If tax is deducted from assessee's income and deposited in the Govt. account, its journal entries will be in the books of company. For example ABC company used the service of MR. N person. Now, ABC company will pay the amount of MR. N person. If TDS will apply as per income

tax law, ABC will deduct TDS and net amount will pay to Mr. N person. At that time following journal entries will be passed in books of ABC company and Mr. N Person.

In the Books of ABC Company

1. When company pays the money and deduct the TDS. 


Indirect Expense Account Debit

Mr. N Person Account Credit

TDS of Mr. N Person Account Credit 



Explanation of Above Entry with Example   : Suppose, ABC  have to pay Rs. 1,00,000 pay rent to Mr. A person. Suppose,   it TDS is Rs. 5000. Now, the net liability of Mr. N person will be of Rs. 95000. and TDS liability will be Rs. 5000 because both amount is payable to different persons. So, Mr. N person account will be credited with Rs. 95000 and TDS account will be credited with Rs. 5000. Because total Rent is the indirect expense, so Rs. 1,00,000 will be debited. Company will follow the law and total amount will be divided between assessee and govt.

Rent  Account Debit  1,00,000

Mr. N Person Account Credit 95000

TDS Credit 5000



Before Actual Payment to Creditor for expense and TDS, both will be shown in the liability side.


Liability Side of Balance Sheet 

Mr. N Person Account (Creditor for Rent ) = Rs. 95000

TDS = Rs. 5000


2. When Payment is done to Creditor for our expense and TDS, then following entry will be passed. 

Mr. N Person   Account Debit  95,000

TDS  Account Debit  5000

Bank Account Credit 1,00,000

In the Books of Mr. N Person  (Assessee) 

1. When his earning from Rent is due.

ABC Company Account Dr. 95000

TDS   Dr. 5000

Rent Account Cr. 100000


2. When Assessee Gets net amount of his rent

Bank Account Dr. 950000

ABC Company Account  Cr. 95000



3. When Govt. Refunds the TDS to Assessee


When Mr. N Person fills his regular income tax return and he refunds some of his TDS. Suppose, it is the Rs. 1500

Bank Account Dr.  1500

Refund of TDS Cr. 1500


{ Important Note : Payment of income tax is the personal liability of any person. So, we do not record the income tax of an individual assessee. But when TDS is deducted it just like drawing of person. So, it will be debited. When we get the refund of TDS, it is just like increase of capital because rent was our earning. If we deduct TDS, it means, it is decrease of our earning and capital. Refund is just like increase of our earning and capital. }



Related : How to File eTDS Return

COMMENTS

: 23
  1. thank u so much

    ReplyDelete
  2. Please help me with this
    TDS received Dr 3000
    To XYZ Cr 3000

    ReplyDelete
  3. my company not dedcuted tds in first month second month they were dedcted 3 months tds on 3 rd month what is the tally entry

    ReplyDelete
  4. hello
    if i paid int on tds and penalty as well how can i treat it in books

    ReplyDelete
  5. paid interest of rs. 10000 (TDS @30%) on a deposit taken by company. what would be the journal entry?

    ReplyDelete
  6. In the above situation assume that ABC Ltd. Has already a debit balance Rs.100000 to the person to whom it pay the rent, and while passing entry for rent the account will be credited for Rs.95000(net of TDS).then the debit balance become Rs.5000(TDS amount), but actually there is no such liability for credit because we pay TDS behalf of the same person. How to deal with the situation.

    ReplyDelete
  7. great....hope to get more from u.

    ReplyDelete
  8. Bank deducted TDS Its Also Showing in 26AS. Amount is not Received in bank which amount has deducted TDS. How can I enter in Tally

    ReplyDelete
  9. Dear sir
    Pls clear to me TDS refund

    ReplyDelete
  10. sir
    how can i pass jv entry in my -fdr received interest- without changing fdr balance

    ReplyDelete
  11. sir hum job work ke gst bill ki entry purchase voucher me karte h to us par tds kese deduct kare uske liye kya jounel entry hogi please help me.....
    subhash prajapat
    mob.=8743879270

    ReplyDelete
  12. Explain with example always understanding thank u

    ReplyDelete
  13. nice information thanks for this article

    ReplyDelete
In comment, you can give your feedback, reviews, ideas for improving content or ask question relating to written content.


Name

access,2,account,87,accountant,92,Accounting,679,accounting definitions,99,accounting ebook,3,Accounting education,85,accounting procedure,2,accounting process outsourcing,2,Accounting Software,54,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,announcements,61,Annuity,2,assets,51,audit,46,auditing,41,Australia,2,B.Com.,22,balance sheet,80,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,2,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,29,calculator,4,canada,3,capital,72,capital budgeting,27,career,20,cash,40,cash book,8,cash flow statement,8,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,159,cost accounting,194,cost center,8,cost centre,1,CPA,2,credit,18,credit card,10,cs,10,currency,35,data,11,Debit and credit,16,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,821,Finance Journal Entries,4,Financial,133,financial accounting,144,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,10,income,17,income statement,11,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,175,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,41,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,135,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,15,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,7,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,4,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,4,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,11,project management,11,provision,13,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,214,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,69,study,21,subsidiary company,2,svtuition,13,swiss bank,2,tally,99,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,13,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,8,VAT,22,Video,34,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Journal Entries of TDS
Journal Entries of TDS
https://1.bp.blogspot.com/-ElEi0vQsxWQ/XfstnfDzSUI/AAAAAAAADIE/CYFfTUy3RdMd84DIJrl9Sh2U6KdF4ZU2wCLcBGAsYHQ/s640/desk-3076954_1280.jpg
https://1.bp.blogspot.com/-ElEi0vQsxWQ/XfstnfDzSUI/AAAAAAAADIE/CYFfTUy3RdMd84DIJrl9Sh2U6KdF4ZU2wCLcBGAsYHQ/s72-c/desk-3076954_1280.jpg
Accounting Education
https://www.svtuition.org/2012/08/journal-entries-of-tds.html
https://www.svtuition.org/
http://www.svtuition.org/
http://www.svtuition.org/2012/08/journal-entries-of-tds.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request 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 PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy