What is TDS
TDS is the tax getting deducted from the person receiving the amount (Employee/Deductee) by the person paying such amount (Employer/Deductor). This is applicable for certain types of payments, as applicable under the Act.
TDS rates applicable for the financial year 2011-12 can be found in the below link. http://www.itaxindia.org/2011/08/tds-rates-11-12-tds-rate-chart-cut-off.html.
To create an entry for TDS, we need to first create TDS sections. To do this, go to Accounting menu and click on TDS sub menu. The following screen will appear wherein there will be three options. (a) New TDS Payable, (b) Find TDS Payable and (C) New TDS Section.
Click on “New TDS Section”, the following screen appears.
Here, update the Section ( for example, section 194H is for Commision and Brokerage) and click on “Create”. Once we click on Create the Sections gets updated and the system prompts “TDS section created successfully”