TDS Payments and Return Filing in Tally Prime

In Tally Prime, managing TDS payments and filing TDS returns ensures compliance with tax regulations. This guide walks you through the steps to process TDS payments and generate the necessary data for return filing, using a real-world example.

Step-by-Step Guide

Step 1: Verify TDS Ledger and Settings

Before proceeding, ensure that TDS is enabled and correctly configured:

  1. Go to Gateway of Tally > F11: Features.
  2. Select Statutory & Taxation.
  3. Ensure Enable Tax Deducted at Source (TDS) is set to "Yes".
  4. Check the TDS ledger under Accounts Info > Ledgers > Display.
  5. Ensure the TDS ledger is created under "Duties & Taxes" with Type of Duty set to "TDS".

Step 2: View TDS Payable Report

Identify the amount of TDS to be paid:

  1. Go to Gateway of Tally > Display More Reports.
  2. Select Statutory Reports > TDS Reports > Outstanding.
  3. The report shows details of TDS amounts deducted but not yet paid to the government.

Step 3: Record TDS Payment

To pay TDS to the government, record the transaction:

  1. Go to Gateway of Tally > Vouchers.
  2. Select the Payment voucher type.
  3. Enter the following details:
    • Date of payment.
    • Debit the TDS ledger, e.g., "TDS on Professional Services".
    • Credit the bank ledger, e.g., "Bank of India".
    • Enter the amount to be paid, e.g., ₹5,000.
  4. Save the voucher by pressing Ctrl+A.

Step 4: Generate TDS Challan

After recording the payment, generate the TDS challan for submission:

  1. Go to Gateway of Tally > Display More Reports.
  2. Select Statutory Reports > TDS Reports.
  3. Choose the option to generate the challan, e.g., Form 281.
  4. Verify the details and print the form for submission to the bank or online payment.

Step 5: Prepare for TDS Return Filing

Tally Prime helps generate data required for TDS return filing:

  1. Go to Gateway of Tally > Display More Reports.
  2. Select Statutory Reports > TDS Reports > Form 26Q or other applicable forms.
  3. Verify the details, including deductor and deductee information.
  4. Export the data in the required format for submission to the Income Tax Department.

Step 6: File TDS Returns

Using the exported data, file TDS returns online:

  1. Visit the TRACES portal or use authorized software for filing TDS returns.
  2. Upload the TDS data file and follow the portal's instructions to complete the submission.
  3. Download the acknowledgment for your records.

Example: TDS Payment and Return Filing

Consider the following scenario:

  • Expense: ₹50,000 for professional fees to "ABC Consultants".
  • TDS Deducted: ₹5,000 at 10% under Section 194J.

Steps:

  • TDS of ₹5,000 is recorded as payable in the TDS Outstanding report.
  • A payment voucher is created, debiting the TDS ledger and crediting the bank ledger for ₹5,000.
  • Form 281 is generated and submitted along with the payment.
  • Form 26Q is prepared and exported for TDS return filing.

Conclusion

TDS payments and return filing in Tally Prime streamline the compliance process by automating calculations and report generation. By following this guide, businesses can manage their TDS obligations efficiently and ensure timely compliance with tax regulations.




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