TDS in Tally 9.0
TDS means Tax Deducted at Source. The concept of TDS was introduced in the Income Tax Act, 1961, with the objective of deducting the tax on an income, at the source of income. It is one of the methods of collecting Income Tax, which ensures regular flow of income to the Government.
1. Deductee (Seller) provides Services and Bill to the Deductor (Buyer)
2. Deductor makes the payment after deducting TDS
3. Deductor remits the TDS amount into Bank (Treasury)
4. Bank (Treasury) remit the amount to the Government Account
5. Deductor Issues Form 16A to Deductee for the TDS amount deducted
6. Deductor Files the e-TDS to NSDL
7. NSDL uploads the e-TDS information to Income Tax Department
8. Deductee Files the Return with Form 16A to Income tax Department.