Creating a Party applicable for Lower/No Deduction

Anand Mon, 11/01/2021 - 16:38

Illustrating a case where Is Lower/No Deduction is applicable

Creating a TDS Party Ledger

  1. Go to Gateway of Tally > Accounts Info > Ledgers > Create

  2. In the Ledger Creation screen, enter the name of the party in the Name field

  3. In the Under field, select Sundry Creditors/Sundry Debtors, Loans (liability) and all ledgers belonging to group under Current Assets except Bank and Cash in bank.

  4. By default, Maintain balances bill-by-bill? is set to Yes.

     

  5. Enter details in the Default Credit Period, if applicable. By default, the Inventory Values are affected? field is set to No.

  6. Set Yes for Is TDS Applicable?

  7. Select the Deductee Type from the List of Deductee Types

  8. Set Yes for Is Lower/No Deduction Applicable?. Select the Section Number from the list. If 197 is selected, the cursor skips to the TDS Lower Rate field and you can enter the TDS Lower Rate in this field. If the section number 197A is selected, the cursor skips to Ignore Surcharge Exemption Limit? in the Ledger Creation screen and the rate of duty is taken as zero.