Tax Deducted at Source category contains information about TDS and its relevant accounts. Create TDS categories to customize how your organization handles TDS. Basically there are two ways in which TDS is applicable. TDS is either deducted for services/products while making a payment to a party or it is applicable by accruing income from another organization.

Fields & its description:

• Code & Name

Enter the code and its corresponding name of the TDS category in this field.

• Section

The respective section of the Income Tax Act can be selected. E.g. Section 194C.

• Reference

Specify the reference for this TDS category. References are used in relevance to the sections.

• Form

TDS has various official forms. This field is used to indicate the form related to the TDS category.

There are three numeric fields to enter the particulars for indicating TDS rate. Enter the TDS%, surcharges (SC%) and cess%.

•  Deduction Account

Select the account where the deduction charges apply.

• Paid Account

Specify the account to be paid in this field.

• Claim Account

If there are claims to be exercised then specify the respective account here.

•   Suffered account

Select the account that has suffered any charges due to TDS in this field.