assignment in tally

How To Easily Learn Tally Online With Practical Assignments

Every business needs accounting since it’s essential for everything from tracking expenses to choosing investments to calculating profits. we can say that learning tally is a terrific skill to have in the job market. even there’s no need to be physically present in the class to learn tally. nowadays, thanks to the internet you can learn tally online. this article has included how to learn tally online and everything you need to know about tally. there are so many institutes that provide tally courses online. so, let’s get started..

What is Tally?

• Tally stands for Transaction Allowed in Linear Line Yards.
• It is an accounting and inventory management application software.
• It which can record daily business transactions or accounting works like sales, purchases, payments received, banking or taxation, etc.
• The most popular way we can say that Tally is an Accounting Software.
• It is designed and developed by Tally Solutions which is a Bangalore-based IT Solution Company.
• In 1986, S.S Goenka was the founding chairperson of Tally Solutions Private Limited.
• Developed based on Accounting principles and Mercantile Law.
• It is simple yet powerful software.
• It is a window-based software.
• It is a stand-alone application.
• It is developed using the Tally Definition Language (TDL).
• It supports,

-Bookkeeping

-MIS report

Versions of Tally Software 

Other features of tally software.

• User-friendly accounting software
• Multi-lingual
• Excellent backup provisions
• Easy exit to an operating system
• Tally can maintain books of account either with inventory or without inventory.
• It can work with multiple company accounts simultaneously.
• Tally can get offline and online support.
• It can be installed on any version of Windows OS like NT, 2000, ME, 95, 98, XP, 7 Ultimate, Vista, and Windows 8. Etc.
• Many computerized accounting software requires numeric codes to maintain the account. But Tally pioneered that no accounting codes were needed.

Skills required in Tally

Career and scope in tally.

Having the skill set of Tally software may help you land your chosen job path quickly if you are someone wishing to start a futuristic career in the accounting field. It is because Tally is extensively used across all business sizes, from small to large across all sectors. 

90% of companies and businesses are said to use Tally software for their daily accounting tasks.

Additionally, the top MNCs and Retail businesses of all kinds, financial institutions, financial organizations (NGOs), hospitals, BPO and KPO sectors, and chartered accountant companies are among the many different industries that use Tally software.

You can have so many career choices in Tally. Such as-

• Inventory Manager
• Data Entry Operator
• Billing Executive
• Tally freelancers
• Tally Course Benefits
• Scope of Tally Courses in India

Job Profiles and Salary in Tally

The common job profiles offered in the organizations for accountants with Tally skill sets are-

Many students who are looking for Diploma Courses after 10th/12th or after graduation and planning to look for career opportunities in computer accounting can learn tally.

The purpose of the tally training course is to teach students the fundamentals of accounting and how to integrate such concepts with the tally platform. Although it’s easy to learn, for ways of operation one must grasp how the software works as well as be familiar with its applications.

Tally Jobs in India

Requirements for Learning Tally Online.

• Any student who wants to learn tally software online should have a computer or laptop with an internet connection.
• Nowadays it has become very easy to learn any software or anything from home.
• There are so many courses with certification and placement assistance in Tally you can opt for.
• Here we have listed some of the best Tally courses you can learn online.
• All of these courses are completely online, so there’s no need to show up to a classroom in person.
• You can access your lectures, readings, and assignments from reputable institutes anytime and anywhere via the web or your mobile device.

More Professional Courses from IIM SKILLS

• Digital Marketing Course
• Technical Writing Course
• Content Writing Course
• Investment Banking Course
• Business Accounting And Taxation Course
• CAT Coaching

Learn Tally Online: IIM SKILLS

IIM SKILLS is one of the global leading institutes that provides professional courses in various subjects including writing, marketing, accounting, etc.

The tally master course by IIM SKILLS is one of the best for getting hands-on experience. It is a comprehensive training program that covers all of Tally’s topics and features. Students learn precisely how to manage and maintain accounts, inventory, GST, and payroll at Tally in the course modules. The training module is particularly informative because it starts from the basics, providing a foundation for your understanding of Tally. Also, a variety of practical assignments and tasks are included to ensure that students grasp the subject well. IIM SKILL’s professional guidance allows one to interact, clear doubts and learn more effectively.

Course Name: Tally Course

Duration of the Course: 18 Hours of Self Learning, 20 Hours of Lecture

Mode of the Course: Online

Fees: Rs.2, 900 + 18% GST

Course Syllabus:

Course offerings:.

• Access to Learning Management System (LMS)
• Self-Paced Learning
• Software Tools
• 60+ Hours Practical Assignment
• Internship Opportunities
• Dedicated Placement Cell
• Govt. of India Recognized Certification

Certificate Availability: Yes

Contact Information:

Email ID: [email protected]

Phone Number: +91 9580 740 740

Learn Tally Online: Tally Training

In-depth information is covered in the Tally ERP9 online course with GST to match the industry’s accounting standards. With the use of real-world examples and tally entries, Tally Training not only explain the principles but also show you how to practically apply them in your day-to-day accounting process.

Course Name: Tally ERP9 Expert Course

Duration of the Course: 1 or 2 Months

Fees: Rs.1800

Couse Syllabus:

• Learning in Hing-lish language
• DVD(Videos + eBook PDF)

Contact Information

Phone Number: +91 9081211174

Learn Tally Online: Vskills

Intelligent Communication Systems India Limited (ICSIL), a department of the Indian government, manages the skills certification programs.

Their certification programs help students measure and exhibit the skills that have high demand and business value. Vskills Tally ERP9 course provides students with a clear understanding of accounting as well as the necessary practical aspects. Thanks to their self-paced training, even newbies can gain from the course’s worthwhile teaching.

Course Name: Certificate in Tally ERP9

Duration of the Course: 19 Hours

Fees: Rs.3, 499

Couse Syllabus: 

• Introduction to Tally ERP9
• Stock and Godwon in Tally
• Groups, Ledgers, Vouchers and, others
• Reports in Tally ERP9
• Back and Restore in Tally ERP9
• Tally.NET in Tally ERP9
• Government Certification
• Lifelong e-learning access

Phone Number: +011 4734 4723

Recommend Read,

• Advanced Tally Courses
• Tally ERP 9 Certificate
• Learn Online Tally
• Tally Training Benefit
• Tally Courses Uses
• Tally Course Eligibility

Learn Tally Online: LearnVern

LearnVern teaches students in the user’s native language. You can learn their Tally courses in Hindi.

Their method of instruction encourages critical thinking, learning by doing, and teaching by example. To help students in remembering the subject better, their Tally course material is enhanced with graphics, animations and, photos. LearnVern also gives practical training through assignments and tests.

Phone Number: +91 88490 04643

Learn Tally Online: UDEMY

Udemy is one of the best online platforms that provide various Tally certification courses. All of these courses are accessible from anywhere at affordable prices. Here we’ve listed three courses among others with the highest rating. You will learn how to use the tally program for payroll, audit, TDS, and GST accounting of any organization.  Their tally course provides students the chance to work on real-time projects in addition to assignments.

• Assignments
• Access on Mobile and TV
• Full Lifetime Access

Please, go to their official website for further details.

Learn Tally Online: Coursera

Students who want to build a career in bookkeeping or want to learn how to manage their account books, Coursera offers the best Tally Bookkeeper professional certificate course.

In their unique 4-month Tally Book Keeper Professional Certificate program, three separate Tally software-related courses are offered. It comprises most of the theoretical and instructional modules. You have to take the course in the specific order listed because the content builds on the previous session.

Program Name: Tally Bookkeeper Professional Certificate

Fees: You can enroll for free.

• Interview Prep

Learn Tally Online: InternShala Trainings

InternShala is an Ed-tech company that provides live, interactive learning in digital format.

Their Online Tally course has covered all the accounting-related concepts. They also provide quizzes and assignments after completing every module to revise your knowledge. 

Duration of the Course: 6 Weeks, 1hr/day (Flexible Schedule)

Fees: Rs.4499

• Basic Concepts of Accounting
• The world of Tally
• Accounting process in Tally
• Bank reconciliation statement
• Tax Deducted at source (TDS) & Collected at Source (TCS) accounting in Tally
• Payroll in Tally
• Goods and Service Tax (GST) accounting in Tally
• Data extraction from Tally
• Some extra topics
• Final training project
• Placement Assistance
• Learn in Hindi
• 1:1 Doubt Solving
• Hands-On-Practice

Learn Tally Online: FITA Academy

Tally Online courses at FITA Academy offer comprehensive instruction in the tally ERP9 software from Journal Entries to finalizing accounts, including managing GST and other taxation. 

You will learn the ins and outs of accounting and finance-related Tally. The modules are covered from both basic and advanced standpoints to help student comprehension of the subject better. Their online Tally course also includes real-world assignments to meet industry standards.

Course Name: Online Tally Course

Duration of the Course:

• Tally-Advanced accounting professional-basics in financial accounting
• Introduction to Tally
• Configuring Tally ERP9
• Company Management
• Master- Ledgers and Groups
• Understanding Vouchers in Tally
• Tally ERP9 reports
• Inventory configuration in Tally ERP9
• Managing inventory using Tally ERP9
• Goods and Service Tax (GST)
• Purchase and Sales reports
• GST reports and returns
• Using tally to manage point of sales (POS)
• Bank reconciliation
• Tally-expert accounting professional
• Payroll accounting
• More advanced topic
• Live Projects
• Instructor-led Live Class
• Flexibility
• Placement Support

Phone Number: 93450 45466

Learn Tally Online: Frequently Asked Questions

Q. can i learn to tally online through a laptop.

Answer: Yes, Students who wish to study tally software online should have access to a computer or laptop with an internet connection.

Q. Which Tally is best for beginners?

Answer: The latest version of Tally Prime is easy to learn. There is no longer a need for prior expertise or specialized training in Tally. You can easily use Tally Prime for your regular accounting tasks with only a simple installation and setup.

Q. Can learning Tally online is difficult?

Answer: Beginners have the choice of enrolling in expert courses provided by reputable institutions or learning the program on their own with the help of blogs and videos that are easily available online.

Q. Where can I practice Tally?

Answer: The Tally Software Education version is available on  www.tallysolution.com  website. You may practice it by downloading it for free.

Q. Which industries can one enter after completing the Tally course?

Answer: The private and public sectors provide a ton of options. Banking, finance, business manufacturing, IT industries, and so on. You can also work in sales, marketing, insurance, and HR.

Learn Tally Online: Conclusion

That’s all about how to learn tally online. In this article, we have focused on tally software, its feature, also the scope and career opportunities in tally. And institutions that provide tally training online. We hope this might have helped to get some insights about tally.  If you plan to learn tally online, you can get in touch with the experts of this institute that will provide you with the information and exposure you need in this area.

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Practical Assignments : GST Accounts–Tally

The Practical Assignments-Tax Accounts- covers  Basic tasks of Maintaining GST Accounts, from set up, Data Entry to GST Reports, in Tally Prime Rel 3.x.  

This assignment is in continuation to Practical Assignments of Basic Financial Accounting & Basic Invoicing & Inventory Accounts. Maintain GST Accounts  in the same Company in which Basic Financial Accounts and Basic Invoicing &  Inventory Accounts Practical Assignments data were entered.  

Perform the operations for each Assignment as explained. Capture the screenshots (Prtscr) and paste it in MS Word file in 1×1 cell. Write the number and Name of screen shot as indicated. Explain the options and operational step.  

This way, capture the screenshots and place in MS Word file, in sequence. Don’t repeat same screenshot.  

After completing all assignments, take Back up of the data files. Now email to [email protected], attaching the Data Back Up file and screenshot zip file.       

GST Accounting – Practical Assignments

Continue in same Company after previous assignments

01-1 Company GST Features

[At Company >Click F11. At Company Features , under section Taxation , set Yes at Enable Goods & Services Tax (GST) . Next, At GST Details screen , under GST Registration Details section, enter the relevant details.]  

Capture Screenshot 1-1A : Company Features . 1-1B : Company GST Details set up  

For more details, visit

https://dvidya.com/goods-service-tax-gst/ https://dvidya.com/goods-services-tax-gst-set-up-composition-dealers-tally/ https://dvidya.com/goods-services-tax-gst-set-up-regular-dealers-tally/ https://youtu.be/STv3wbduT8A https://youtu.be/RwJJIYC6msE https://youtu.be/VSS48c_LZXY https://youtu.be/OjSvFYUJ_bI   https://youtu.be/mLrLyOeDX78 https://youtu.be/7wlTsturfks

02 GST Masters

02-1 Create SGST Ledger Account Master

[Select GoT>Create> Ledger. At Ledger Account creation , at Name , enter SGST; at Under , select Duties & Taxes ; at Tax Type , select SGST/UTGST ; At Inventory Values are affected , set No .  

Capture Screenshot 1-2 : SGST Ledger Account Creation.  

https://dvidya.com/gst-set-up-accounts-inventory-masters-tally/ https://youtu.be/x8VZLjVEeug https://youtu.be/XVZbi0-ufDY https://youtu.be/Uzsise4yZXg

02-2 Create CGST Ledger Account Master

[Select GoT>Create> Ledger. At Ledger Account creation , at Name , enter CGST; at Under , select Duties & Taxes ; at Tax Type. At Inventory Values are affected , set No .   Capture Screenshot 2-2 : CGST Ledger Account Creation.  

02-3 Create IGST Ledger Account Master

[Select GoT>Create> Ledger. At Ledger Account creation , at Name , enter IGST; at Under , select Duties & Taxes ; at Tax Type select I GST ; At Inventory Values are affected , set No .  

Capture Screenshot 2-3 : CGST Ledger Account Creation.  

https://youtu.be/XVZbi0-ufDY

02-4 UQC set up in UoM Master

Set UQC in UoM – Kilograms [Select GoT>Alter> Unit. Select Kilogram. At Unit Alteration , at Unit Quantity Code (UQC) , select KGS-Kilograms from the UQC list. Press Ctrl+A to save].  

Capture Screenshot 2-4 : UoM-UQC set up.  

https://youtu.be/KAKto78n9fQ

02-5 GST details set up in Stock Item Master

Set GST details in Stock Item Wheat, Select GoT>Alter> Item. Select Wheat, At Stock Item Alteration,  Under HSN/SAC & Related Details, at  HSN/SAC  Details , select Specify Details Here. At HSN Description – Food grains, HSN Code- 1234, At Description of Goods, select Specify Details Here , Under GST Rate and related Details, At GST Rate details, select Specify Details Here . At Taxability Type, select Taxable . At GST Rate, enter the GST Rate applicable for the Item. At Type of Supply, select Goods .  

2-5 : Capture Screenshot UoM-UQC set up.  

https://youtu.be/U7fuonC9dkI https://youtu.be/LK-df_Oh6Vk

02-6 Set GST details in Supplier Master

At Supplier Ledger Account, enter Tax related details [Select GoT>Alter>Ledger,  select ABC & Co. At Ledger Alteration, click F12:Configure. At Ledger Master Configuration screen, under Party Tax Registration details , set Yes at Provide GST Registration details . At Tax Registration details of Ledger Account Master, Enter Registration Type- Regular, GSTIN 19AAAC1234K1ZV. At Set Alter Additional Details, set Yes and then Place of Supply, select the State of the Party.  

Capture Screenshot : 2-6A: Ledger Account Master, 2-6B: Ledger Master Configuration screen,

https://youtu.be/1_jlZD8mXkI https://youtu.be/B6jEPMw26Tg  

03 GST Invoicing

3-1 Create GST Sales Invoice .

Create Sales Invoice for 10 kg of Wheat @25 per kg sold to ABC & Co on 1-5-21. [Select GoT>Vouchers. Click F8:Sales (or press F8). Select Sales Voucher type from List. Click Ctrl+H and select Item Invoice . Enter Voucher Date 1-5-21 . At Party A/c Name , select ABC & Co . At Sales Ledger, select Sales .  At Name of Item , select Wheat , At Quantity , enter 10 kg. at Rate , enter 25/kg. The amount 250 would be shown. In next line, select End of List . Next select SGST, the SGST amount (15.00) would be auto calculated. Next select CGST. the CGST amount (15.00) would be auto calculated. The total Invoice amount (250.00+15.00+15.00 = 280.00) is displayed. Press Ctrl+A to save the Voucher].  

Capture Screenshot : 3-1 GST Sales Invoice Entry ,

https://youtu.be/L57aR4Zb7GM https://youtu.be/S0y56oS7r1U

3-2 Print the Sales Voucher

Voucher dated 1-5-23 on ABC Co [Select GoT>Day Book . At Day Book display, press F2 and Date 1-5-23. Select the Sales Voucher from the list to get the Voucher Alteration. Press Ctrl+P to get the Print screen. Click I:Preview to View the  Print form of the Invoice on screen]    

Capture Screenshot : 3-2 GST Sales Invoice in Print ,

https://youtu.be/L57aR4Zb7GM https://youtu.be/S0y56oS7r1U  

03-03 GST Reports

• Display GSTR-1 for 1-4-23 to 31-7-23

[Select GoT>Display more reports>GST Reports>GSTR-1. Click F2:Period (or press F2) and enter Period from 1-4-23 to 31-7-23 to display GSTR-1 Report  

Capture Screenshot : 3-3 GSTR-1 Display, https://dvidya.com/gsrt-1-return-filing-tally/

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Passing Entry in Tally

• Basics of Tally
• Ledger Creation and Alteration
• Important Tally Features
• Important Tally Reports
• Common Errors in Tally

Mixed Entries Practice

Last updated at April 16, 2024 by Teachoo

We know that there are   6 types of Accounting Vouchers in tally

For every entry we have to think which type of entry

Assignment/Examples

Pass the following entries in Tally

Maintenance Charges Bill Received from SK Associates  Rs 2500,Amt paid by Cheque of SBI Bank

Maintenance  Exp Dr              2500

        To SK Associates                             2500

SK Associates                                  2500

      To SBI Bank                                           2500

(First Entry is Journal,Second is Payment

SK Associates is a Sundry Creditor,Maintenance Exp is Indirect Expense,SBI Bank Under Bank Account) 

Furniture purchased from DK Furnishers Rs 10000,Amt paid by Cash

Fur Dr                   10000  

        To DK Furnishers                            10000

DK Furnishers   10000

    To Cash                 10000

SK Associates is a Sundry Creditor,Furniture is Fixed Assets,Cash Account is already created) 

Security Service Bill Received from Ravi Security Agency, Amt not yet paid

Security Exp Dr 2500

 To Ravi Security Agency                        2500

(It is a Journal Entry

Security Exp is Indirect Expense and Ravi Security Agency is Sundry Creditors )

Professional Service Bill received from CA Amit Gupta Rs 40000

Professional Exp                 40000

     To CA Amit Gupta                    40000

Professional Exp is Indirect Expense and CA Amit Gupta   is Sundry Creditors )

Salary paid to employees A,B,C,D and E Rs 15000 eac h by cash

Salary Expense Dr                              75000

        To Cash                               75000

(It is a Payment Entry)

Salary Expense is Indirect Expense ,Employee names are normally not recorded )

The company entered into contract with Alex and Co to provide Consultancy service of Rs 20000 on 20 Jan. As per terms, Rs 4000 was paid in advance by cheque of SBI Bank ON 22 Jan. Maxwell completed its work and sent its bill for technical service of Rs 20000 on 28 Jan and Balance 16000 was paid on 29 Ja n by cash

No Entry for Agreement Entered

Alex and Co 4000

To SBI Bank                        40000

28  jan

Consultancy Exp Dr 20000

To Alex and Co 20000

29  Jan 

Alex and Co Dr             16000

     To Cash                                   16000

(The three Enries are Payment,Journal and payment

Consultancy Exp is Indirect Expense and Alex and Co   is Sundry Creditors )

Loan taken from Director Ajay Patel Rs 200000 by cheque @12% p.a for 1 month

SBI Bank A/c Dr                         200000

    To Ajay Patel Loan A/c                      200000

Entry for Interest due

Int on Loan A/c Dr           1000 

To Ajay Patel Loan A/C                     201000

(Interest for the month= 200000*12%*1/12 =1000)

Entry for Amount paid including interest

Ajay Patel Loan A/C A/c Dr  201000                        To SBI Bank A/C    201000

(Ajay Patel Loan A/C is Loans Liabilities,Int on Loan is Indirect Expense and SBI Bank is Bank Account)

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Payroll Tally Notes with Assignment

Payroll Tally Step by Step Notes with Assignment for Training of Tally ERP 9 and Tally Prime. Tally Training Study Notes for Self study and Teachers of Tally Training Computer Course.

Step by Step Payroll Tally Notes

F11 -> Accounting Features Maintain Payroll – Yes Maintain more than one payroll or cost category – Yes

Create Employees Category

GOT -> Payroll Info -> Employees Category -> Create

Head Office Regional Office

Allocate Revenue Items – Yes

Create Employees Group

GOT -> Payroll Info -> Employees Group -> Create

Category  – Head Office Category Name – Marketing Under – Primary Define salary details – No

Create below given employees groups:-

Create Units (Work) : Payroll Tally Notes

GOT ->Payroll Info -> Units (work)

Type : Simple Symbol : Hrs Name : hours

Type : Simple Symbol : Min Name : Minutes

Type : Simple Symbol : Days Name: Number of Days

Type : Compound First Unit : Hrs, Conversion -60, Second unit : Min

Type : Compound First Unit : Days, Conversion -8, Second unit : Hrs

Check in display

Create Attendance / Production Type

GOT->Payroll info-> Attendance

Name : Present under : Primary

Attendance type : Attendance / Leave with pay  

Name : Overtime under : Primary

Attendance type : Production Unit : Compound ( Day of 8 hrs)

Display 

Payroll Tally Notes for Training Purpose

Pay Heads in Tally Payroll

GOT->Payroll info-> Pay Heads

Name : Basic Pay

Pay Head Type: Earning for Employees Income Type : Fixed Under : Indirect Expenses Affect Net Salary : Yes Use for Calculation of Gratuity : Yes Calculation Type : On attendance Attendance with Pay  : Present Calculation Period : Months Basis of calculation : As per calendar period Rounding Method : Normal rounding

Pay Head Type: Earning for Employees Income Type : Fixed Under : Indirect Expenses Affect Net Salary : Yes Use for Calculation of Gratuity : No Calculation Type : As computed value  Rounding Method : Normal rounding

Computation Info Compute :  On specific Formula Add Pay Head : Basic Pay Slab Type : Percentage Value : 20 %

Pay Head Type: Earning for Employees Income Type : Fixed Under : Indirect Expenses Affect Net Salary : Yes Use for Calculation of Gratuity : No Calculation Type : As computed value 

Rounding Method: Normal rounding

Computation Info

Compute :  On specific Formula Add Pay Head : Basic Pay

Slab Rate : Percentage Value : 40 %

Transport Allowance

Pay Head Type: Earning for Employees Income Type : Fixed Under : Indirect Expenses Affect Net Salary : Yes Use for Calculation of Gratuity : No Calculation Type : As computed value  Rounding Method: Normal rounding

Computation Info Compute :  On specific Formula Add Pay Head : Basic Pay Slab Rate : Percentage Value : 10 %

Name : Bonus

Pay Head Type: Earning for Employees Income Type : Fixed Under : Indirect Expenses Affect Net Salary : Yes Use for Calculation of Gratuity : No Calculation Type : Flat Rate Calculation Period: Monthly

Name : PF Employer

Pay Head Type: Employer’s statuary contribution Statuary Pay Type : PF Account Statuary Pay Type : PF Account Under : Indirect Expenses Affect Net Salary : Yes Calculation Type : As computed value  Rounding Method : Normal rounding

Computation Info Compute :  On specific Formula Add Pay Head : Basic Pay Slab Rate : Percentage Value : 12%

Name : ESIC Employer

Pay Head Type: Employer’s statuary contribution Statuary Pay Type : Employee State Insurance Under : Indirect Expenses Affect Net Salary : Yes Calculation Type : As computed value  Rounding Method : Normal rounding

Computation Info   Compute:  On current Sub-total Slab Rate: Percentage Value : 3.25%

Name : PF Employee

Pay Head Type: Employee’s statuary deduction Under : Current Liability   Affect Net Salary : Yes Calculation Type : As computed value  Rounding Method : Normal rounding

Computation Info   Compute :  On specific Formula Add Pay Head : Basic Pay Slab Rate : Percentage Value : 12%

Name : ESIC Employee 

Pay Head Type: Employee’s statuary  deduction Under : Current Liability Affect Net Salary : Yes Calculation Type : As computed value  Rounding Method : Normal rounding

Computation Info   Compute:  On current Sub-total   Slab Rate: Percentage Value : 0.75%

Name : Over Time

Pay Head Type: Earning for Employees Income Type : Fixed Under : Indirect Expenses Affect Net Salary : Yes Use for Calculation of Gratuity : No Calculation Type : On production Production type : Over time

Note : Over time rate to be filled for each employees at salary details

GOT -> Payroll Info -> Employees  -> Create

Single Employee

Employee Creation Window

Category : Head Office Name : Ajay Gulia Under : Marketing DOJ : 1 st April 2021 Define Salary Details : Yes

Salary Detail Window

Basic Pay : 20000 DA: HRA: TA : Bonus : 1000 Overtime : 50 ( Rate ) PF Employer PF Employee ESIC Employer ESIC Employee

Employee Number : M001 Designation : Manager Function : Marketing Management Location : Delhi Gender : Male DOB : 01-April-1990 Blood Group : A Positive Father Name : Rohit Saxena Spouse Name : Reena Address : Shernagar, Muzaffarnagar Phone Number : 9876543433 e-mail : [email protected]

Provide Bank Detail – Yes Bank Details window appear Account Number : 123456767788 IFSC code: ABCD0123456 Bank Name : Specify Bank Name Bank Name : State Bank of India Transaction Type : e-fund transfer

PAN Number : ASDFG1234C Aadhar number :1234567891234567 PF Account number : ABCD11334 PRAN : 576778788 ESI NUMBER : 5654433 ESI DISPENSARY : DELHI

GOT->Payroll Info ->Employees -> Single employee -> Display

GOT -> Payroll Info -> Employees 

Category : Head Office

Payroll Vouchers

GOT ->Transactions ->Payroll Vouchers

Attendance Boucher Creation

Change Voucher Date 31 -05-2021

Ctrl + F4 (Payroll) ->ctrl+F5 (attendance) -> Alt A Attendance Auto fill)

Attendance Auto Fill Window

Voucher Date : 31-05-2021 Employee Category : Head Office Employees Group : All Group Attendance Type : Present Default value : 0 Sort by : Employees Name

Fill the value : Number of Present days for each individual

Repeat for attendance type : Overtime

Payroll Boucher Creation

Ctrl F4 (Payroll) -> Alt A (Payroll Auto fill)

Payroll Autofill window

Process for : Salary From : 01-05-2021 To: 31-05-2021 Employees Category : Head Office Employees Group : All Items Sort by : Employees Name Payroll Ledger : Cash Include Emp Bank details : Yes

Accept  

Display the  Salary Information

GOT -> Display ->Payroll reports -> statements of Payroll -> Payslip ->Single Payslip

Select the name for Pay slip of Individual

Thanks for read the Payroll Tally Notes with Computer Course Training Assignment for practice

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Step By Step Guide to Make TDS Entry in Tally (with Practical Examples)

Table of Contents

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(Tax Deducted at Source) TDS is one of the most common entries to be passed while receiving and making payment. It involves proper calculation, posting it in the right ledger, and reconciliation. In this post, we will guide you in passing TDS entry in Tally. We will provide practical examples for TDS Journal entry in Tally ERP 9 and Tally prime.

Before we get into the steps of passing Tally entry of TDS, let’s understand the concept of TDS receivable and payable.

Note: If you exactly know about TDS, TDS rates, calculations and posting, you can directly jump to the Steps section.

What is TDS (Tax Deducted at Source)?

Tax Deducted at Source (TDS) is a pre-tax deduction made at source (before payment) by the payer from the payment made to the payee. It is a mechanism of collecting tax by using a deduction mechanism rather than through payments made by the taxpayer. It is deducted at the time of payment, and directly deposited into the government (Income Tax Department’s) account. 

There are generally two types of TDS in Books of Accounts: TDS Payable and TDS Receivable. We will understand both these TDS entries in TallyPrime with examples.

Suggested Read: How to Record Sales & Purchase Entry in Tally with GST

TDS Payable

It’s the amount which you are required to deduct from the total payable amount to the service provider, contractor, professional, and then deposit to Income Tax department as tax on behalf of the payee.

It’s held on behalf of the Payee therefore it appears on the liability side of the balance sheet. Let’s see the TDS payable entry below:

This must be confusing, let’s try to understand through a practical TDS example

Consider yourself as a hospital entity. Suppose you need to pay a sum of ₹1,00,000 to a doctor who provides professional medical services at your hospital.

Now as per the Finance Act, you should pay only ₹90,000 to the doctor after deducting ₹10,000 (at the rate of 10% on the total amount payable.) You need to deposit this 10,000 directly to the Income Tax department’s bank account on behalf of the doctor.

• The rate of 10% is for Professional services like medical and legal services under section 194J of the Income-tax Act. TDS deduction could be anywhere between 1% to 30% depending on the nature and number of payments to be made.
• ₹10,000 that is deducted would be considered as the amount paid by the doctor to the IT department. So, TDS is not your additional expense, but just a part of the payment that is diverted directly to the government, instead of the payee.

TDS Receivable

TDS receivable is the amount deducted by your customer, client, tenant, etc. from the total payable amount and is deposited to the IT department on your behalf. Take a look at how TDS receivable would look in the book of accounts.

TDS Receivable Example

If you have rented out an office in your building to a bank at a rent of ₹80,000 monthly, you will only receive ₹72,000 in your bank account. ₹8000 will be deducted by the bank and will be deposited as tax paid to the IT department on your behalf.

• Rent payable on land and building attracts 10% flat TDS rate.
• The deducted amount is deposited to the Income Tax department on your behalf by the bank. It could be considered as the advanced tax paid by you.

Suggested Read: Guide on When and How to Use Tally Shortcut Keys List

Calculation of TDS: Formula and Basic Example

Although it’s quite simple, there might be confusion related to TDS calculation. TDS deductible amount should be accurately calculated while making payments. Here are the major things that you need to consider while calculating TDS.

• TDS deductible should be calculated on the total amount payable to the deductee.
• TDS Deductible is calculated as per the rates prescribed by Income Tax.
• For Assessment Year 2023-24, here are the TDS Rates:
• Salary- As per Tax Slab
• Rent on Land and Buildings: 10%
• Professional Fees: 10%
• Individual Contractor: 1%
• In case, the TDS needs to be deducted for services where GST is applicable, TDS is calculated on the taxable value of supply and not on the total payable amount. (Discussed this part in the later entry with example.)
• If part payment is to be made, then TDS will be calculated only on the partly payable amount but not on the entire amount.

To calculate TDS, you can apply this simple formula

TDS Amount = Payment Amount × TDS Rate

Lets look at an example,

Lets assume that you need to pay around INR 10000 to a contractor, the TDS rate for this service is 10%.

Hence, TDS Amount = ₹10,000 × 0.10 = ₹1,000

Therefore, you will deduct INR 1000 as part of TDS and pay contractor only INR 9000.

Steps for TDS Entry in TallyPrime

Now, let’s understand the entries made in Tally for TDS. As we have talked, there are two types of TDS entries that you need to make: TDS Payable and TDS Receivable.

TDS Payable Entry in Tally with Example

According to standard Accounting Practice, TDS Payable is passed by three different entries.

• The first entry is passed while booking TDS payable and the total amount payable to the deductee.
• The second entry will mention the exact amount through bank/ cash to the deductee.
• The third TDS entry is passed when TDS payable is deposited in the account of the Income Tax Department.

Practical TDS Payable Entry Example

If ₹50,000 for as contract is payable to Mr. X after deducting TDS at 10%.

• The first entry is when the TDS is booked along with amount payable to the Payee
• The second Entry would be made while paying the amount to the Payee
• Third Entry when TDS Deducted is paid/deposited to the IT department’s Bank Account

Recording expenses in the deductor’s book

You can also book the TDS in the books during the booking expenses. But, it is better, if you pass the entry when the payment is made.

Recording TDS while Making Payment (Main Entry)

Depositing tds, steps for tds payable entry in tallyprime (same for tally erp 9).

TDS payable entry is covered in Tally in four sections: TDS Payable Ledger, Journal Entry to Book, payment entry when the amount is actually paid, and entry when TDS payable amount is deposited. Here are the steps you need to follow for Tally ERP TDS payable entry for the mentioned sections.

1. Create TDS Payable Ledger First (Skip if already created)

Step 1: Open “ Gateway of Tally ”

Step 2: Navigate to “ Accounts info ” info or press “A”

Step 3: Go to “ Ledgers ” or press “L”

Step 4: Choose Create option or press “C”

Step 5: Write “ TDS Payable ” on name field.

Step 6: Choose “ Current Liabilities ” as the group

Step 7: Simultaneously Press Ctrl+A and save the ledger.

2. Pass Journal Entry to Book TDS Payable in Tally

Step 2: Navigate to “ Accounting Vouchers ” info or press “V”

Step 3: Press “ F7 ” to pass journal entries

Step 4: Enter expense ledger for expenses you are booking (Rent, Contract, Professional Fee)

Press “ Alt +C ” to create a new expense ledger

Step 5: Input the total amount payable before TDS deduction and press “ Enter ”

Step 6: Select the Payee whom the amount is to be paid

Press “ Alt +C ” to create a new ledger

Step 7: Press “ Enter ”

Step 8: Input the amount after TDS Deduction and press “ Enter ”

Step 9: Select “ TDS Payable ” account and input the TDS amount

Step 10: Enter Narration (Optional)

Step 11: Press “ Ctrl +A ” to save the journal voucher

Suggested Read: How to Create Ledger in Tally Prime

3. Payment Entry when the Amount is Actually paid

Step 2: Navigate to “ Accounting Vouchers ” info or Press “V”

Step 3: Press “ F5 ” on keyboard to pass payment entries

Step 4: Select the payment account (Bank, Cash, etc.)

Step 5: Select the payee whom the amount is to be paid

Step 6: Enter the net amount paid to the payee

Step 7: Press “ Ctrl +A ” to save the journal voucher

4. Entry when TDS Payable amount is deposited

Step 5: Select the “ TDS Payable ”

Step 6: Enter the net amount deposited

TDS Receivable Entry in Tally with Example

TDS receivable is the amount withheld by the company or the payer from the payments made to the payee. This amount is defined as the tax paid on the behalf of the payee.

The withheld amount is an asset for the receiver as it represents the money owed to you by the withholding party till the amount is remitted to the tax authorities.

TDS receivable entry is generally booked in two parts.

• First one when the bill is issued to the party.
• The second one is when the net payment after TDS deduction is received from the party.

Practical TDS Receivable Example

Your company sent out the bill of ₹35,000 for contract to XYZ private limited. The payment was received after the deduction of TDS at 10%. Passing the TDS Receivable entry in the books would look as the below:

1. Recording Revenue

2. receiving payment and booking tds (main entry), 3. receiving tds amount.

For Full Refund

For Transferring TDS to Tax Paid (for Partial Refund)

Steps For TDS Receivable Entry in TallyPrime (Same for Tally ERP)

There are three sections covered under the TDS Receivable Entry in Tally: TDS receivable ledger, journal entry to record the expense, and recording TDS payable while making payment. Here are the steps you need to follow for Tally ERP TDS receivable entry to cover the mentioned sections in detail below:

1. Create TDS Receivable Ledger (Skip if already created)

Step 2: Navigate to “ Accounts info ” Info or Press “A”

Step 3: Go to “ Ledgers ” or press “L” for keyboard shortcut

Step 5: Write “ TDS Receivable ” on Name Field.

Step 6: Choose “ Current Assets ” as the group

Step 7: Simultaneously Press “ Ctrl+A ” and save the ledger.

Suggested Read: Depreciation Entry in Tally Prime and ERP 9 (with Examples) 2023

2. Journal Entry to Record the Expense /Transactions

Step 3: Press “ F7 ” on keyboard to pass journal entries

Step 4: Enter the customer/ client account to whom the bill is issued

Press “ Alt +C ” to create a new customer/client ledger

Step 5: Input the total amount receivable before TDS deduction and press “ Enter ”

Step 6: Enter revenue ledger for income you are booking (Professional, Contract, etc.)

Step 7: Press “ Enter ” twice

Step 8: Press “ Ctrl +A ” to save the journal voucher

3. Recording TDS Payable While Making Payment

You need to pass two entries to book TDS receivable

Payment Entry

Step 3: Press “ F6 ” on keyboard to pass receipt entries

Step 4: Choose the payment account (Bank, Cash, etc.)

Step 5: Select the party from whom the amount is received

Step 6: Enter the net amount received from the client/customer

Step 7: Press “ Ctrl + A ” to save the journal voucher

Suggested Read: Step By Step Interest Calculation in Tally (Simple & Advanced Mode)

4. TDS Receivable Booking

Step 4: Select the “ TDS Receivable ” ledger

Step 5: Input the total amount deducted as TDS and press “ Enter ”

Step 6: Enter customer/client ledger

Step 8: Press “ Ctrl + A ” to save the journal voucher

TDS Entry in Tally with GST

Whenever you must make a Tally entry for TDS with GST, the entire process remains the same except the fact that TDS is only deducted on the taxable value component not on the GST component. Else, the entry will remain the same as above.

Here is a TDS entry in TallyPrime with an example

If your company avails ₹1,00,000 services from a website designing agency and the agency charges 18% GST on the total value of contract. The total value payable would be ₹1,18,000.

The TDS deductible would be ₹10,000 (10% of ₹1,00,000). TDS would not be deducted from GST component i.e., ₹18,000

The entry would be as follows:

Note: The entry should be passed as a journal voucher in Tally ERP 9 and Tally Prime.

Suggested Read: What is the Purpose of Financial Management in Tally?

TDS on Advance Payment

You can generate an accounting voucher for the advance payments paid directly or via third party with the applicable TDS. Here are all the steps you need to follow to file TDS for advance payment.

1. Advance payment with TDS

Step 1: Open Gateway of Tally , go to Vouchers and press F5 . Additionally, press Alt+G , select Create Voucher , and press F5 .

Step 2: Choose the bank ledger within the account section. Press Alt+C , to generate master. Additionally, press Alt+G , go to Create Master , type or select Ledger , press Enter .

Step 3: Within the Particulars section, select the party ledger and fill in the required amount.

Step 4: Next, choose the TDS ledger and the amount will appear automatically.

Step 5: Add Bank Allocation Details as required.

Step 6: Next, accept the screen and press Ctrl+A to save the details.

2. Advance Payment via Third-party with TDS

Step 1: Open the Gateway of Tally , go to Vouchers , then press F7 (Journal) . Additionally, press Alt+G , go to Create Voucher , and press F7 (Journal) .

Step 2: Next, debit the party ledger and add the amount.

Step 3: Credit the third-party ledger and add the amount.

Step 4: Choose the TDS tax ledge and the amount will appear automatically.

Step 5: Add TDS details as needed.

Making TDS entry in Tally might feel like a tedious task. However, by following the above-mentioned steps, you can make the procedure easier for yourself. Whether you want to calculate TDS or make TDS payable entry in Tally, this article has covered multiple guides to streamline the TDS entry procedure in Tally.

TDS Entry in Tally with GST [Payable and Receivable] FAQs

Under which group is tds ledger created in tally.

TDS ledger should ideally be created under Duties and Taxes Group in Tally. However, it could be created under Current Asset and Current Liability for better representation on balance sheet. TDS receivable should be under Current Asset and TDS payable under Current Liability for better representation.

Is TDS an asset or liability?

TDS receivable is considered as an asset while TDS payable is considered as liability.

Is TDS calculated on GST component?

No, TDS is not calculated on GST component. TDS is only calculated on the taxable value of the service or charges but not on the GST component.

Is TDS payable an expense?

TDS payable is the amount deducted from total payment to be made to the payee. Since it’s a part of salary, contract or professional expense, it is deemed to be expense. However, TDS payable is not accounted separately as an expense, as it's already booked when the expense is due.

Rajan is pursuing CA with a keen interest in trends and technologies for taxation, payroll compliances, Tally Accounting, and financial nuances. He is an expert in FinTech solutions and loves writing about the vast scope of this field and how it can transform the way individuals and businesses... Read more

Related Question and Answers

To file a TDS return through CompuTax software, follow the steps given below:

• Go to the official site of CompuTax
• Register/Login using your credentials
• On the right-hand side panel click on E-TDS Return option
• Complete the captcha
• The system asks for permission in order to download the CSI file
• As you open the downloaded file, you’ll get redirected to the NSDL official site
• Enter you PAN and Date of Deposit of Challan
• Then click on download challan file and then open it
• A new browsing window appears, click on Continue and you’ll be redirected to PAN verification page
• Click Verify and then login using your user id and password
• Enter the PIN and then press continue
• Update the entries if you want to and then press continue
• A pdf file would be generated with an option to download or print it out.
• Write Answer

To purchase a voucher in Tally Prime, you can use the shortcut key 'F9.'

To quickly access the sale voucher in Tally Prime, use the shortcut key 'F8.' This shortcut expedites the entry process for sales transactions.

The best cloud accounting software often depends on specific business needs. Popular choices include QuickBooks Online, Xero, and FreshBooks, offering features like real-time collaboration, accessibility, and automated updates.

Tax accountants commonly use professional accounting software like QuickBooks, Xero, or Intuit ProConnect Tax Online to streamline tax preparation, filing, and financial management processes for their clients.

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• TallyPrime Server
• Developer Reference
• Tally.ERP 9

Record TDS Transactions in TallyPrime

You can record the required TDS transactions as per your business needs.

Account for Expenses and Deduct TDS Later

Generally, the deductor deducts the tax in the same invoice in which the expenses are accounted. But in some cases, deductor may follow the procedure of accounting only expenses on the receipt of bills and later, deduct applicable tax on all such accounted expenses in one invoice.

In this section

•       Account for expenses
•       Deduct Applicable TDS

Accounting for Expenses

•   Gateway of Tally > Vouchers > press F7 (Journal) Alternatively, press Alt + G (Go To) > Create Voucher > press F7 (Journal).
• Debit the expense ledger and enter the amount. As always, press Alt+C , to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter .

• Accept the screen. As always, you can press Ctrl + A to save.

Deduct Applicable TDS

• Gateway of Tally > Vouchers > press F7 (Journal) Alternatively, press Alt + G (Go To) > Create Voucher > press F7 (Journal).
• Debit the party ledger and enter the TDS amount. As always, press Alt+C , to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter .

• Press Enter .
• Credit the TDS ledger and enter the amount. As always, press Alt+C , to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter .

Purchase of Software

You can create the nature of payment and record the transaction.

•       Nature of payment for taxable purchase of software products
•       Taxable purchase of software products
•       Nature of payment for the exempt purchase of software product
•       Zero-Rated purchase of software product

Nature of payment for taxable purchase of software product

• Gateway of Tally > Create > type or select TDS Nature of Payments > and press Enter . Alternatively, press Alt + G (Go To) > Create Master > TDS Nature of Payments > and press Enter .
• Enter the Name of the nature of payment.
• Enter 194J and 94J in the fields Section and Payment Code , respectively.
• Set the option Is software royalty to Yes . In the TCS Nature of Payment Creation screen, press F12  (Configure) > set the option Allow Software Royalty to  Yes . to get the field Is software royalty
• Enter the Rate of tax .

Taxable purchase of software products

• Gateway of Tally > Vouchers > press F9 (Purchase) Alternatively, press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
• Press Ctrl + H  (Change Mode) to select the required voucher mode ( Accounting Invoice , in this case).
• Set the option M odify tax details for TDS to Yes .
• Press Ctrl+A to accept.
• Enter the Supplier Invoice No. and Date .
• Select the ledger of the supplier in the field Party A/c name . As always, press Alt+C , to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter .
• Select the ledger, created under Purchase Accounts , under Particulars , and enter the Amount . As always, press Alt+C , to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter.
• Press Enter . The Expense Allocation screen appears.

In this case, the purchase ledger and TDS ledger are created without selecting a Nature of Payment in the master. The nature of payment is selected during transacting. You can also create ledgers by selecting the respective nature of payment.

Nature of payment for the exempt purchase of software product

• Set the option Is software royalty  to Yes .
• Enter the Rate of tax as 0% .
• Set the option Is zero rated to Yes .

Zero-Rated purchase of software product

• Gateway of Tally > Vouchers > press F9 (Purchase). Alternatively, press Alt + G (Go To) > Create Voucher > press F9 (Purchase).
• Select the ledger of the supplier in the field Party A/c name . As always, press Alt+C, to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter .
• Select the ledger, created under Purchase Accounts , under Particulars , and enter the Amount . As always, press Alt+C , to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter .

The value from both taxable and zero-rated/exempt transactions will be updated in Form 26Q. However, in the returns file, the value from exempt transaction is flagged with the initial S , indicating software purchase.

Reversal of Expenses with TDS

You can record any reversal of expenses with the applicable TDS using a purchase voucher.

•       Purchase voucher
•       Debit Note

Purchase voucher

• Select the Party A/c name . As always, press Alt+C , to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter .
• Under Particulars , select the expense ledger and enter the amount.
• Select the TDS ledger. The amount appears automatically.

To Enable Debit Note Voucher Type

• Gateway of Tally > Alter > type or select Voucher Type > Debit Note > and press Enter . Alternatively, press Alt + G (Go To) > Alter Master > Debit Note > and press Enter .
• Set Activate this Voucher Type to Yes .

Debit Note Voucher

• Gateway of Tally > Vouchers > press Alt + F5 (Debit Note). Alternatively, press Alt + G (Go To) > Create Voucher > press Alt + F5 (Debit Note).
• Enter the Original Invoice No. and Original Invoice Dt .
• Select the expense ledger and enter the amount.
• Select the TDS ledger.

Deduct Tax at Lower Rate

To record a transaction attracting a lower rate with applicable TDS can be recorded by using the commission expense ledger.

The Assessing Officer shall issue a certificate for deduction of Tax at Lower rate than the relevant rate specified under the section, Where the assessing officer is satisfied that the total income of the recipient (Assessee) justifies the deduction of income tax at any lower rates than the rate specified under the sections specified under the act and has received an application in Form 13 from the assessee under sub-section (1) of section 197.

The certificate granted shall be valid for the assessment year specified and is valid only for the person named therein.

• Gateway of Tally > Vouchers > press F7 (Journal). Alternatively, press Alt + G (Go To) > Create Voucher > press F7 (Journal).
• Debit the expense ledger and enter the amount.
• Credit the party ledger (ensure you have selected Section Number 197 in the party ledger). The amount after TDS deduction will appear in the Amount field automatically.
• Enter the Bill-wise Details , as required.

Deduct Tax at Zero Rate

A Deductee (other than Company or Firm) can submit a declaration in Form 15G under sub section (1) of section 197A, for TDS deduction at Zero Rate. Declarations can be given only by those deductees whose income is below the taxable limit and the income falls under section 193, 194, 194A, 194EE and 194K.

• Credit the party ledger (ensure you have selected Section Number 197A in the party ledger).

Record TDS on Benefits or Perquisite as per 194R

As per the Finance Act 2022, a new TDS Section 194R will be applicable in Income Tax Act, effective from 1st Jul 2022. According to this section, “Any person responsible for providing to a resident, any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession, by such resident, shall, before providing such benefit or perquisite, as the case may be, to such resident, ensure that tax has been deducted in respect of such benefit or perquisite at the rate of ten per cent. of the value or aggregate of value of such benefit or perquisite.” That means, with the afore-mentioned conditions, as per Section 194R under the Income Tax Act. you will need to deduct 10% tax at source for providing any benefit or perquisite that exceeds Rs. 20,000.00 in value in a year. 

Let’s us see how to record such scenarios in TallyPrime and account for the tax deduction at source. Consider the following example:

Let’s assume your company has purchased Amazon Coupons worth Rs. 25,000.00 to share – as the benefit or perquisite – with a business associate (not a salaried employee) named Ganeshji Enterprises. As per Section 194R, this requires a deduction of tax of 10% at source (in respect of the benefit/perquisite). To manage this transaction in your company books, you will need to do the following in TallyPrime.

However, if your business is paying the benefit or perquisite to the business associate after deducting the TDS, you can follow your regular transaction process of TDS deduction entry while paying the benefit or perquisite. Refer to TDS Transactions for more details.

Set up the party ledger, TDS Nature of Payment, expense ledger, and TDS duty ledger

As per the scenario mentioned above, e nsure that you have the following ledgers: (The names of ledgers are suggested only for illustration purpose.) 

• A Party ledger as the supplier: Amazon Ltd.
• Section : 194R
• Rate for Individuals/HUF with PAN : 10%
• Rate for other deductee types with PAN : 10%
• An Expense ledger for books: Amazon Coupon Expenses 
• Is TDS Applicable : Applicable
• Nature of Payment: Benefits and Perquisites to Business Associate  
•   Is TDS Deductible : Yes
• Deductee Type : Company Resident
• Under Tax Registration Details , PAN/IT No. is filled with a valid details.
• Type of Duty/Tax : TDS
• Nature of Payment : Benefits and Perquisites to Business Associate
• Select the Party ledger (for example, Amazon Ltd) – the supplier of the coupons.
• Under Particulars, select an expense ledger (say Amazon Coupon Expenses) that is created under Indirect Expenses.
• Enter the Amount – in this case Rs 25,000.00

• Provide other necessary details, and accept the screen. As always, press Ctrl+A to save the transaction. 

A purchase transaction has been created to record a purchase meant to be shared as a benefit or perquisite to a business associate. As per Section 194R, you can deduct a TDS of 10% on that amount to pay to the department, and the business associate can claim the amount while filing the returns. You can therefore create a journal voucher in TallyPrime to record the deduction, as per Step 2 .

Step 2: Record a TDS booking voucher for TDS on benefits or perquisites to a business associate

Using a Journal Voucher you can record TDS deductions on benefits or perquisites to a business associate. This will reflect in your TDS Returns, as you will pay the deducted amount to the government.

• Ensure that F12 (Configure) > Use Cr/Dr instead of To/By during voucher entry is set to  Yes . 
• Debit the expense ledger – say Marketing Expenses – with Rs 25,000.00.
• Credit the Party Ledger – your Business Associate – Ganeshji Enterprises.  The amount displayed will be after deducting 10% (which is Rs 22,500.00 in this case). The transaction creates two reference amounts In the Bill-wise details screen – for the coupon amount of Rs 25,000.00 and tax of Rs 2,500.00 Use the same Reference No. for both amounts – say Ref 1 .

Once you have recorded the transaction to show the tax deduction, you will need to nullify the transaction amount – basically a reversal of the transaction. You can create a journal voucher, as in Step 3 ,  to nullify the transaction amount using the Reference No. used in the journal voucher for recording the TDS deduction.

Step 3: Record a journal voucher to nullify the TDS transaction

• Open a journal voucher.
• Set off the amount against the Reference No. ( Ref 1 ) used in the journal entry for TDS deduction (which is Rs 22,500.00, in this case).
• Use New Ref (Ref 2, for example) to enter the TDS amount of Rs 2,500.00.

Step 4: Record a journal voucher to show receipt of the TDS amount

In this scenario, we will need to also record a transaction to account receipt of the TDS claimed from your business associate – Ganeshji Enterprises. This can be done using a Journal voucher in TallyPrime.

• Open a journal voucher
• Debit Cash or Bank for the deducted amount of Rs 2,500.00

As you see, in Step 1, the purchase entry has been created to record purchase of the coupons, which is shared with the business associate. Step 2 included recording of the TDS deduction to be shown in TDS Return. Step 3 nullifies the deducted TDS, so that the it does not impact your books of account. Step 4 records the receipt of the TDS amount. You can record similar transactions for all such scenarios where you provide benefit or perquisite to your business associates. 

TDS on Expenses with Inventory

You can create an accounting voucher for expenses made towards inventory, along with the applicable TDS.

• Press Ctrl + H (Change Mode) to select the required voucher mode ( Item Invoice , in this case).
• Enter the Supplier Invoice No . and Date .
• Select the Party A/c name .
• Select the Purchase ledger . As always, press Alt+C , to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Stock Items > press Enter .
• Select the stock item enter the Quantity and Rate . The amount appears automatically.

TDS Deduction for Interest Payable

When transaction is recorded for payment or booking of the interest (expense) without deducting TDS, a separate transaction is recorded to deduct TDS for this interest amount. However, the transaction recorded for TDS deduction should be linked to the transaction recorded for interest amount. You can link these transactions by flagging the interest paid transaction as an exception. Additionally, you can use the voucher class feature to help you automatically calculate the interest amount and the TDS amount on the interest.

• Press F11 (Features) > set Enable Interest Calculation to Yes .
•  Set Show more features to Yes .

• Gateway of Tally > Alter > type or select Voucher Type > Credit Note > and press Enter . Alternatively, press Alt + G (Go To) > Alter Master > Credit Note > and press Enter .

• Gateway of  Tally > Display More Reports > Statutory Reports >  TDS Reports > Form 26Q . Alternatively, press Alt + G (Go To) > type or select Form 26Q > and press Enter . The credit note will appear under No link is available in booking and booking with deduction voucher .
• Gateway of Tally > Vouchers > press F7 (Journal). Alternatively, press Alt + G (Go To) > Create Voucher > press F 7 (Journal).
• The values will be automatically displayed in the voucher.
• Accept the voucher to save the details.
• Gateway of Tally > Vouchers > press F5 (Payment). Alternatively, press Alt + G (Go To) > Create Voucher > press F5 (Payment).
• Select the bill reference as Agst Ref and choose the required bill.

TDS on Advance Payment

You can create an accounting voucher for advance payments made directly or by a third-party, along with the applicable TDS.

•       Advance payment with TDS
•       Advance payment via third party with TDS

Advance payment with TDS

• Select the bank ledger in the Account field. As always, press Alt+C , to create a master on the fly. Alternatively, press Alt+G (Go To) > Create Master > type or select Ledger > press Enter .
• Under Particulars , select the party ledger and enter the amount.

Advance payment via third party with TDS

• Debit the party ledger and enter the amount.
• Credit the third party ledger and enter the amount.
• Select the TDS tax ledger. The amount appears automatically.

TDS on Expenses

You can create an accounting voucher for your business expenses, along with the applicable TDS.

• Credit the party ledger. The amount after TDS deduction will appear automatically.
• Enter the Bill-wise Details , as required, and press Ctrl+A to save.

TDS on Fixed Assets

You can create an accounting voucher for expenses made towards fixed assets, along with the applicable TDS.

• Debit the fixed asset ledger and enter the amount.
• Credit the party ledger and the amount is automatically filled.
• Enter the required details in the Bill-wise Details screen.

TDS on Interest Paid Towards Overdue Payments

The following chain of transactions will help you deduct TDS against interest payable/paid on overdue payments to suppliers/parties.

•       Activate interest calculation
•       Define interest parameters in party ledger
•       TDS ledger for Interest
•       Expense ledger for interest amount
•       Journal voucher for the amount payable
•       Voucher class for credit note
•       Interest on overdue payment
•       Deduct TDS on the interest payable
•       Payment of interest and bill amount to the party

Activate interest calculation

•  Set Show all features to Yes .

Define interest parameters in party ledger

• Gateway of Tally > Alter > type or select Ledger > and press Enter . Alternatively, press Alt + G (Go To) > Alter Master > Ledger > select the party ledger and press Enter .
• Press Ctrl+A to accept the interest parameters.

TDS ledger for Interest

• Gateway of Tally > Create > type or select Ledger > and press Enter . Alternatively, press Alt + G (Go To) > Create Master > Ledger > and press Enter .
• Enter the Name of the ledger.
• Select Duties & Taxes group in the field Under .
• Select TDS in the field Type of duty/tax .

• Set the option Inventory values are affected to No .
• Set the option Activate interest calculation to No .

Expense ledger for interest amount

• Select Indirect Expenses group in the field Under .
• Set the option Is TDS applicable to Yes .

Journal voucher for the amount payable

• Credit the party ledger and press Enter .
• Provide the Bill-wise Details and press Ctrl+A to save. The Interest Parameters screen appears.

• Press Ctrl+A to save.

Voucher class for credit note

You can create voucher class in credit note to account for the interest payable to the party.

• Specify the Name of Class and press Enter to view the Voucher Type Class screen.

• Press Enter to return to the Voucher Type Alteration screen.

Interest on overdue payment

• Gateway of Tally > Vouchers > press Alt+F6 (Credit Note) Alternatively, press Alt + G (Go To) > Create Voucher > press Alt+F6 (Credit Note).
• Select the Voucher Class .
• Press F2 (Date) and set the date to day on which the interest amount becomes due.
• Select party to whom interest has to be paid. The Interest Details screen appears.
• Press Enter to return to the voucher screen.
• Select New Ref as the Method of Adjustment in the Bill-wise Details screen.
• Enter a Name > skip Due Date , or Credit Days fields > press Ctrl+A to save.
• In the Interest Parameters screen, set zero in the Rate field.

Deduct TDS on the interest payable

A journal voucher has to be recorded for TDS deduction against the credit note recorded for interest payable amount. However, without a reference number, the TDS deduction transaction cannot be recorded.

Since TDS reference was not used in credit note, it will appear as an exception in the TDS returns. Resolve this exception to generate a reference that can be used for recording TDS deduction transaction.

Resolve the exception and generation TDS reference

• Gateway of Tally > Display More Reports > Statutory Reports >  TDS Reports > Form 26Q . Alternatively, press Alt + G (Go To) > type or select Form 26Q > and press Enter .
• Press Enter . The Summary of Exceptions screen appears.
• Press  Alt + L (Link All) to create link for the TDS booking transaction.

The amount of TDS deductable appears under Balance Deductable .

To record a journal voucher to deduct TDS

• Press Ctrl+F (Autofill) to view the Autofill screen.
• Accept the date displayed in the Till Date field.
• Select party to whom interest is paid form the List of Ledgers .
• Select the duty ledger created for TDS on interest in the field Duty Ledger field. The TDS amount will auto-fill with the respective bill details.
• Press Enter from the Amount field. The Bill-wise Details screen appears.
• Select Agst Ref in the field Type of Ref .

Payment of interest and bill amount to the party

• Gateway of Tally > Vouchers > press F5 (Payment) Alternatively, press Alt + G (Go To) > Create Voucher > press F5 (Payment).
• Under Particulars , select the party ledger.
• Enter the bill amount plus the interest in the Amount field and press Enter . The Bill-wise Details screen appears.

Note: Select interest amount alone if only interest is paid to the party.

TDS on Interest Paid on Loans Taken from Parties

The following chain of transactions will help you deduct TDS against interest payable or paid on loans received.

•       Interest calculation in party master
•  Set Show all features  to Yes .

Interest calculation in party master

• Set the option Activate interest calculation to Yes . The Interest Parameters screen appears.
• Select the Voucher Class.
• Press Ctrl+A to return to the voucher screen.
• Debit the interest payable ledger. The amount appears automatically.

Refer to resolve exception under TDS on Interest Paid Towards Overdue Payments.

• Under Particulars select the party ledger.
• Enter the bill amount plus interest in the Amount field and press Enter . The Bill-wise Details screen appears.

TDS on Transport

You can create an accounting voucher for transport-related expenses, along with the applicable TDS.

Section 194C of Income Tax Act is amended to include TDS deduction of 1% for individuals and Hindu Undivided Families owning more than 10 goods carriage, and at the rate of 2% in case of other payees. For others not owning more than 10 goods carriage at any time during the previous financial year, and who has furnished a declaration to this effect along with his PAN, no TDS is applicable.

Note: A TDS of 20% is applicable for parties without a valid PAN.

Expenses with TDS – Transport in more than 10 goods carriage

• Debit the transport expenses and enter the amount.
• Credit the party ledger. The amount appears automatically.
• Enter the required details in the Bill-wise Details screen, and press Ctrl+A to save.

Expenses without TDS – transport in less than 10 goods carriage

• Debit the transport expense and enter the amount.

TDS at Normal or Lower Rate as per Rule 37BC

You can apply normal or lesser TDS rate in transactions using the respective nature of payment.

• Enable the option Allow relaxation in rate for Non-Residents .
• Press Ctrl+A to accept and return to TDS Nature of Payment screen.
• Enter the Name for TDS nature of payment.
• Enter Section and Payment code for the nature of payment as per TDS schedules.
• Set the option Relaxation in rate for Non-Residents (as per Rule 37BC) to Yes .
• Enter the TDS Rate .

Similarly, create another nature of payment for the same section and payment code, by setting the option Relaxation in rate for Non-Residents (as per Rule 37BC) to No , as shown below:

In case of non-availability of PAN, if the option Relaxation in rate for Non- Residents (as per Rule 37BC) is set to No , irrespective of the rate entered in the nature of payment master, TDS is deducted on the default higher rate applicable for the section and payment code, as per TDS schedules.

Based on the applicability and non-applicability of rule 37BC, tax gets deducted.

The journal voucher with TDS at normal or lesser TDS rate is shown below:

The journal voucher with TDS at default higher rate is shown below:

Note: The transaction where TDS is deducted at normal or lesser rate appears under Deduction at Normal Rate and transaction with high rate under Deduction at Higher Rate row, in Deduction Details section of TDS Form 27Q report.

In both cases, the party is a non-resident. However, one is eligible for relaxation in rate as per rule 37BC and the other is not. In case of person not eligible for relaxation in rate, higher TDS rate gets applied.

It is recommended to create separate nature of payment masters for 37BC eligible and non-eligible nature of payments.

Deduct TDS on Partial Value

Using journal voucher, you can account for TDS that has to be paid for a part of the total amount.

• Press F12 (Configure).

Deduct TDS When Expenses are Paid Through Cash

Using purchase vouchers, you can account for TDS when expenses are paid through cash.

• Select Cash as Party A/C name .

Payment of TDS & Late Fee on TDS

You can record a payment transaction with inclusion of the necessary TDS to be paid to the government. You can also record a payment of late fee on TDS to the department.

TDS Payment

• Late Fee on TDS  

Scenario 1: On 05-05-2015, ABC Company paid TDS deducted in the month of April 2015 to the government directly.

• Press Ctrl +F (Autofill).
• Select Stat Payment as Type of Transaction .
• Select   TDS as the   Tax Type .
• Enter the   Period From   and   To   dates. Provide the relevant details in the Statutory Payment screen.

Scenario 2: On 05-05-2015, XYZ Company paid the TDS deducted to the government on behalf of ABC Company.

• Press F2 (Date) to change the date to 05-05-2015 .
• Debit the TDS ledger.

Payment of Late Fee for TDS

With TallyPrime, you can also record the payment of late fee for TDS, in case the returns were filed after the due date.

• Gateway of Tally > Vouchers > press F5 (Payment). Alternatively, press Alt+G (Go To) > Create Voucher > press F5 (Payment).
• Select cash or bank ledger in the Account field.
• Select the TDS tax ledgers, and the relevant nature of payments/nature of goods.
• Select the Late Fee ledger grouped under Indirect Expenses .

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Smyly Dazzles in Cubs 7-1 Dismantling of ‘Rattlers

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South Bend, IN - For the third time in his career, Chicago Cubs left-hander Drew Smyly pitched for the South Bend Cubs on a rehab assignment. On a humid and warm Tuesday afternoon, the Cubs defeated the Wisconsin Timber Rattlers 7-1 in the opener of six games, and Smyly shined.

South Bend, IN - For the third time in his career, Chicago Cubs left-hander Drew Smyly pitched for the South Bend Cubs on a rehab assignment. On a humid and warm Tuesday afternoon, the Cubs defeated the Wisconsin Timber Rattlers 7-1 in the opener of six games, and Smyly shined. In three perfect innings, Smyly put up all zeroes, but struck out five Rattlers to help lead South Bend to victory.

The former Arkansas Razorback Smyly took the hill and worked with his battery mate, Casey Opitz, also a former Razorback. Smyly said later that Opitz did not mention that he went to the same school, a true pro. What did work though, their chemistry together.

Smyly came out firing and punched out the first man he faced, working a 1-2-3 inning. The lefty, making his first start of 2024, after pitching in nine games prior with the Chicago Cubs in April, sent down the side in order as well in the 2nd and 3rd. The southpaw left in a scoreless inning, but soon after departing, South Bend grabbed the lead.

In the bottom of the 3rd, base hits by Brett Bateman and Pedro Ramirez brought home three total runs. For Ramirez, it was a triple, and South Bend got to Wisconsin starter Mark Manfredi for the first time.

After a cool down period, Smyly spent some time talking with us outside the clubhouse, and said that he was pleased with his rehab outing after being placed on the injured list with a hip issue.

“It felt really good health wise, my hip felt really good and my mechanics in general too,” Smyly said. “I hit my spots, and made really competitive pitches. That was great to execute at a high level.”

The Razorback connection of the battery also worked beautifully. Opitz caught a brilliant game, and he added a big swing as well. After the Cubs got their fourth run on an error, Opitz hammered a home run over the left field wall for a two-run shot. 6-0 Cubs in the 4th.

Out of the bullpen, Aaron Perry brought the good stuff in piggyback relief, cruising with five innings of one-run baseball. The lone tally came via a sacrifice fly RBI. He earned the victory, with his ERA standing at 1.46.

Felix Stevens added a late home run, and Yovanny Cabrera recorded the final three outs to ice the opener win.

With Smyly’s third time pitching at Four Winds Field, he was happy to be back in Downtown South Bend.

“It’s so nice to drive over from Chicago and not have to jump on a plane to go somewhere.” Smyly said. “The facilities here are great too, and better than some Double-A and Triple-A facilities.”

The Cubs will look for a 2-0 series lead with a morning game between these two set for tomorrow at 11:05 AM. Right-hander Nick Hull is the expected starter for South Bend.