TDS management that applies the right section, rate and threshold to every bill
TDS management that applies the right section, rate and threshold to every bill
Turn on TDS, add your TAN and deductor details, and SmartLedger sets up sections such as 194C, 194J and 194Q with their rates and thresholds. Bills then work out TDS from the section you pick, apply lower deduction certificates and show the net payable. Record each TDS deposit, and the TDS your clients deduct, on the document itself.
Turn on TDS once, set it per party
Add your TAN, PAN and deductor details once, then give each vendor and client TDS defaults that their bills and invoices pick up.
- Switch Income TDS Settings to Enabled and TDS options appear on bills, invoices and orders
- Keep your legal name, deductor name and responsible person's contact details in one place
- Record each vendor's and client's PAN, Residential Status and Entity Type
- A party's Default TDS Section fills in when you apply TDS at invoice level
- Mark a vendor or client TDS Exempt and no TDS is worked out for them
Every TDS section, with its rates and thresholds
SmartLedger sets up the TDS sections for you, from 194C and 194J to 195, each with rate rules you can review and change.
- See each section's statement form (26Q, 27Q or 24Q), status and System or Custom type
- Set a Default Rate and a PAN Missing Rate, which falls back to 20% when left empty
- Apply a threshold per transaction or on the party's annual aggregate for the financial year
- Date each rule with Effective From, so a rate change applies from the right day
- Add your own sections and rules alongside the system ones
Deduct TDS on bills and see net payable
Pick a section for the whole bill or for each line, and SmartLedger works out TDS on the taxable value and books it to TDS Payable.
- TDS Deducted and Net Payable update in a Live Preview as you edit
- Annual aggregate thresholds are checked against the vendor's earlier bills when you save
- No PAN on the vendor? SmartLedger takes it from their GSTIN before applying the higher 206AA rate
- Purchase orders carry their TDS setting through to the bill
- Payments against the bill settle the Net Payable, not the full total
Apply lower and nil TDS certificates automatically
Record a vendor's or client's lower or nil deduction certificate, and SmartLedger deducts at its rate for that section while it is valid.
- Store the certificate number, TDS section, approved rate and Valid From and Valid To dates
- The certificate rate is used only when it is lower than the section's normal rate
- Documents dated outside the validity period fall back to the normal rate
- Set a certificate to Revoked or Expired and it stops applying
- Search certificates by number, party or section
Track TDS deposits and TDS your clients deduct
Record each TDS deposit against its bill, record the TDS your clients withhold from your invoices, and keep TDS due dates in view.
- Record a deposit on the bill with Payment Type set to TDS Payment
- Every deposit is listed under the bill's TDS Payment Timeline
- On sales invoices, the client's TDS brings the balance down to the Net Receivable
- Client TDS is booked to TDS Receivable, kept apart from TDS Payable
- TDS deposit and return due dates sit in the compliance calendar, with a link to TRACES
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