Income Tax will be deducted at source based on the rate defined in the Act, for the Deductees, against the Nature of Payments. Hence to account TDS transactions, every payment and the party to whom the payment is made needs to be identified against the Nature of payment and deductee type as defined in the Act.
In Tally.ERP 9, all the Nature of Payments and Deductees Types (as defined under the Act) are provided as Statutory Masters. These Statutory Masters will be loaded into Tally.ERP 9 during company creation, when the Statutory compliance for is set to India. On enabling TDS Feature in F11: Statutory & Taxation features, TDS Statutory masters will be available for selection during Creation of Expenses, Party and TDS ledgers.
To view Statutory Masters
Go to Gateway of Tally > Display > Statutory Info.
The Statutory Info. Displays the following options:
TDS Nature of Payments