Tax Deduction at Source

Tax Deduction at Source (TDS) is a type of income tax collected at the source. It was introduced under the Indian Income Tax Act of 1961. TDS is deducted when an invoice is issued or when payment is made, whichever happens first.

The person making the payment (the deductor) deducts the tax and sends it to the government. The deductor also gives the payee (the deductee) a Form 26AS or a TDS certificate. This form shows all TDS details.

The India Localization SuiteTax Engine SuiteApp streamlines TDS calculation and compliance for vendor bills. With the TDS feature, you can:

• Create TDS tax codes and tax types.

• Create TDS rules for vendor bills.

• Calculate TDS on vendor bills.

• View tax details before submitting TDS to the tax authority.

• Create TDS challan vouchers.

• Automatically adjust TDS when you change or delete a bill. The SuiteApp creates TI Journals (records that track TDS adjustments) for these changes.

• Review and confirm that the calculated TDS amounts on vendor bills are accurate before final submission.

Before you use the TDS feature, read the following topics:

1. Setting Up TDS

2. Creating Rules for TDS Tax Types

3. Assigning TDS Section Codes to Items and Accounts

4. Applying TDS on Vendor Bills

5. Viewing TDS Tax Details

6. Editing Vendor Bills with TDS

7. Verifying TDS Amount

8. Creating TDS Challan Vouchers

General Notices