What is mean by TDS?
TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.
The company or person that makes the payment after deducting TDS is called a deductor and the company or person receiving the payment is called the deductee. It is the deductor’s responsibility to deduct TDS before making the payment and deposit the same with the government. TDS is deducted irrespective of the mode of payment–cash, cheque or credit–and is linked to the PAN of the deductor and deducted.
TDS is deducted on the following types of payments:
- Interest payments by banks
- Commission payments
- Rent payments
- Consultation fees
- Professional fees
However, individuals are not required to deduct TDS when they make rent payments or pay fees to professionals like lawyers and doctors.
TDS is one kind of advance tax. It is the tax that is to be deposited with the government periodically and the onus of the doing the same on time lies with the deductor. For the deductee, the deducted TDS can be claimed in the form of a tax refund after they file their ITR.
Here you are going to learn about the steps to create the TDS in Fresa Gold.
1. First Login with Fresa Gold, Navigate to Accounts module, select Account settings menu (Fig.1).
2. Select TDS Master (Fig.2).
3. Once clicked the TDS Master, it will reflect the TDS List, it will list the list of TDS which are already created, click Create button to create new TDS (Fig.3).
4. Enter the required fields, like Code, Name, Percentage, Payable and Receivable, Effective Date, click Save button, now the TDS is saved successfully(Fig.4).
I hope you got an idea about how to create TDS
For further clarification, send your queries to Support@fresatechnologies.com because our motto is to help customers.
www.fresatechnologies.com – Your one-stop solution for freight software needs.