Tax Deduction at Source

Tax deduction at source means the tax required to be paid by the assesses,

is deducted by the person paying the income to him. Thus, the tax is deducted at the source of income itself. The income tax act enjoins on the payer of such income to deduct the given percentage of income as income tax and pay the balance amount to the recipient of such income. The tax so deducted at source by the payer is to be deposited in the income tax department account. The tax so deducted from the income of the recipient is deemed to be payment of income tax by the recipient at the time of his assessment.

The income from the following sources is subjected to tax deduction at source
Salary and all other positive incomes under any head on income( Section 192 ) Interest on securities ( Section 193 ) Interest other than interest on securities( Section 194A ) Payments to contractors and sub-contractors( Section 194C ) Winnings from Lottery or crossword puzzles( Section 194B ) Winnings from horse races( Section 194BB ) Insurance Commission covering all payments for procuring Insurance business( Section 194D ) Any interest other than interest on securities payable to non-residents not being a company or to a foreign company(Section 195 ) Payment to non-resident sportsman including athlete or sports association/institution. In case of non-resident sportsman, payments in respect of advertisements as well as articles on any game/sports in India in newspapers, magazines ,etc. is included( Section 194E ) Payment in respect of deposits under NSS [National Savings Scheme]( Section 194EE ) Payment on account of repurchase of Units by Mutual Fund or UTI( Section 194F ) Payment for Commission or brokerage( Section 194H ) Payment of rent( Section 194I )

Payment of fees for professional or technical services( Section 194J )

Commission to Stockiest, distributors, buyers and sellers of Lottery tickets including remuneration or prize on such tickets( Section 194G ) Income from Units purchased in foreign currency or long-term capital gain arising from the transfer of such Units purchased in foreign currency ( Section196B ) Payment of any income to non-residents in respect of interest or dividend on bonds and shares( Section 196C )etc

TDS Configuration

Define Define Define Define Define Define Assign

Regime Registrations (TDS) TDS Sections TDS Tax Codes TDS Threshold Setup Vendor Additional Information (W/o Site) Vendor Additional Information (With Site) Vendors to TDS Thresholds

Process of TDS

Assign TDS Tax Code to Vendor Invoice Validation of TDS Invoice Review Tax Vendor Invoices Issue Payment to TDS Tax Vendor Process India - Process TDS Payments Process India - Generate TDS Certificates Process India - TDS Certificates

Define Regime Registration (TDS)

Contd

Define TDS Sections

Define TDS Sections

Define TDS Threshold Setup

Define Vendor Additional Information (W/o Site)

TDS Vendor Types= Company-IND, Individual-IND, Hindu Undivided Family-IND and Other Persons-IND

Define Vendor Additional Information (With Site)

Assign Vendors to TDS Thresholds

Creation of Vendor Invoice with TDS Taxes

Contd

Now system generates TDS Invoices (Credit Memo) against Standard Vendor and Standard Invoice against Tax Vendor.

View TDS Invoice and Standard Invoice

Payment Issue against TDS Invoice

Process India-TDS Payments

Run India Generate TDS Certificates

Run India TDS Certificate

Note:- After completion of this process system generates TDS Certificate and issue to Vendor.

TDS TABLES
JAI_AP_TDS_INVOICES This table stores the details of TDS Invoices

JAI_AP_TDS_INV_CANCELS This table stores the details of TDS Cancel processing when a parent invoice having TDS is cancelled JAI_AP_TDS_PAYMENTS This table stores the details of TDS challan for Payments to TDS Authority

JAI_AP_TDS_CERT_NUMS This table stores the certificate numbers by Organization TAN where TDS Year information is defined

Troubleshooting

Why TDS Taxes are not populated at Vendor Invoice Form?
Vendor Name is not assigned to Threshold Setup Form.

A)
A)

Why system is not generating TDS Invoices?

TDS Sections are not populated at Vendor Info India Form.

A)

2) The TAN Number provided is same as that of TDS Regime Setup 3) Report (RDF) Version is Lower Version

Why TDS Certificates are not generating by System? 1) Country code is mentioned as India in the Supplier definition form.