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tally erp 9.0 material Tax Deducted at Source in tally erp 9.0

tally erp 9.0 material Tax Deducted at Source in tally erp 9.0

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Published by: Raghavendra yadav KM on Sep 15, 2012
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Lesson 18: Tax Deducted at Source
Tax deducted at source is one of the modes of collecting Income-tax from the assessees. Suchcollection of tax is effected at the source when income arises or accrues. Hence, where anyspecified type of income arises or accrues to any one, the Income-tax Act enjoins on the payer of such income to deduct a stipulated percentage of such income by way of Income-tax and pay onlythe balance amount to the recipient of such income.The tax so deducted at source by the payer has to be deposited in the Government treasury to thecredit of Central Government within the specified time. The tax so deducted from the income of the recipient is deemed to be payment of Income-tax by the recipient at the time of his assess-ment.The person responsible for deducting Tax at source is liable to issue a certificate to the personfrom whom the tax is deducted, so that the person can submit the same to Income Tax authorities.
18.1 Basic concepts of TDS
It is important to understand some of the terminologies & concepts of TDS :
Scope and Applicability
 At present, incomes from several sources are subjected to tax deduction at source. Some of suchincome which are subject to T.D.S. are :
Interest on securities, Debentures
Lesson Objectives
On completion of this lesson, you will learn how to
Configure Tax Deducted at Source in Tally.ERP 9
Record TDS Transactions
Generate TDS Reports and Challans
Tax Deducted at Source
Deemed Dividend
Interest other than interest on securities
Winnings from Lottery or Crossword Puzzles
Winnings from horse races
Payment to contractors (Other than Advertisement)
Payment to contractors (Advertisement Contractors)
Payment to Sub-contractors
Payments to non-residents
Payment to non-resident Sportsmen or Sports Association
Payment in respect of deposit under NSS
Payment on Account of Re-purchase of Units by Mutual Fund or UTI
Payments in Respect of Units to an Offshore Fund
Payment of Compensation on Acquisition of Immovable Property
Insurance Commission
Commission etc. on sale of Lottery tickets
Commission, brokerage etc
Rent of Land, Building or Furniture
Rent of Plant, Machinery or Equipment
Royalty Agreement is MAde on Or After June 1, 2005
Short-Term Capital Gains U/s 111A
Fees for professional or technical services
Fees for Tech. Services Agreement is Made on Or After June 1, 2005
Income in Respect of Units of Non-Residents
Income from foreign currency bonds or shares of Indian company
Income of Foreign Institutional Investors From Securities
Income From Foreign Exchange Assets Payable to an Indian Citizen
Income by Way of Long Term Capital Gains Referred to in Section 115E
 Any other Interest on Securities
Interest on 8% Savings (Taxable) Bonds, 2003
What is TAN?
TAN is the Tax Deduction Account Number issued by the Income-tax Department to all personsdeducting tax at source. TAN has to be quoted in all relevant challans, tax deduction certificates,TDS returns and other notified documents. To obtain TAN, all persons or organisations arerequired to apply in Form 49B to the TIN Facilitation Centres of NSDL.
Tax Deducted at Source
Who has to Deduct Tax ?
 Any person making the payments to third parties as specified in scope and applicability sectionare required to deduct tax at source.
Who is a Deductee ?
 As per Income Tax Act, the Tax will be deducted at source based on the prescribed rate onpayments made to the third parties, who are Assessees (includes individual & HUF as covered U/S 44AB) carrying on business of following types.Such Tax will be deducted at time of payment or credit, whichever is earlier.
Hindu undivided Family (HUF)
Body of Individual (BOI)
 Association of person (AOP)
Co-Operative society
Local Authority
Partnership firm
Domestic company (Indian company)
Foreign company
 Artificial Judicial Person
18.2 Configuring TDS in Tally.ERP 9
The TDS module in Tally.ERP 9 is integrated with financial accounts and takes care of all the TDSand eTDS requirements of your business, right from voucher entry to report generation. Tally.ERP9 completely automates your TDS management and accurately computes Tax to be deducted atsource & TDS payable amount, TDS payment challans, TDS Certificates, Statutory Returns andother related MIS reports.Its eTDS features further assist you to file your mandatory tax returns in electronic format asspecified by the Income Tax Department. It helps in minimizing error-prone entry of information,incorrect remittances and also provides accounting for interest & penalties (if any) for smooth &effective functioning of your business.
Features of TDS compliant Tally.ERP 9
Tally.ERP 9 comprises of comprehensive features to ensure accurate & automatic computation of Tax Deductible at Source for Non-Salaried deductees according to the provisions stipulated in theIncome Tax Act.The TDS functionality in Tally.ERP 9 encompasses the following salient features:
Simple & User friendly
Easy and quick to setup & implement

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