Tax Deduction at Source

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

As per the act, the person making a payment (the deductor) deducts tax at the source and sends it to the government. The deductor also gives the deductee a Form 26AS or TDS certificate with all the TDS details.

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 review everything before submitting to the tax authority.

• Create TDS challan vouchers.

• Automatically offset changes in TDS when you modify or delete a bill by creating TI Journals.

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

• Setting Up TDS

• Mapping TDS Tax Types

• Applying TDS on Vendor Bills

• Viewing TDS Tax Details

• Creating TDS Challan Vouchers

General Notices