Tax Deduction at Source

Tax Deduction at Source (TDS) is an income tax introduced under the Indian Income Tax Act of 1961 to collect tax from the exact source of income. TDS is deducted when an invoice is issued or payment is made, whichever happens first.

According to the concept, a person (deductor) who is liable to make payment of specified nature to another person (deductee) shall deduct tax at source and remit the tax amount to the government. The deductor issues Form 26AS or TDS certificate, which contains TDS details, to the deductee.

The India Localization Tax Process SuiteApp lets you calculate TDS on vendor bills. You can do the following using the TDS feature:

• Create TDS tax codes and tax types.

• Create TDS tax rate rules to calculate TDS on vendor bills.

• Calculate TDS on vendor bills.

• View tax details to help review the taxes before submission to the tax authority.

• Create TDS challan vouchers.

• Offset the changes in TDS due to modification or deletion of bill by creating TI Journals automatically.

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

• Setting Up Tax Deduction at Source

• Creating Tax Deduction at Source Tax Type Mapping

• Applying Tax Deduction at Source on Vendor Bills

• Viewing Tax Deduction at Source Tax Details

• Creating Tax Deduction at Source Challan Vouchers

General Notices