TDS Calculation
How TDS is calculated on payments
TDS Calculation
Automatic Calculation
When creating a payment:
- System checks vendor TDS section
- Verifies PAN availability
- Checks threshold limits
- Calculates TDS at applicable rate
Example: Section 194J
For a professional fee of Rs. 1,00,000:
- TDS rate: 10%
- TDS amount: Rs. 10,000
- Net payment: Rs. 90,000
Higher TDS (206AB)
If vendor hasn't filed returns:
- Normal rate: 10%
- 206AB rate: 20%
Override
Manually adjust TDS when:
- Lower deduction certificate
- Specific agreement
- Exemption certificate