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2. The Way to Success … Statutory Information of TDS Learn to use TDS in Miracle TDS Tutorial TDS Setup in Miracle

3. What is TDS ? What is TDS ? Who is a Deductee ? Who is a Deductor ? Who is a Deductor ? What are the Type of Deductees ? What is Nature of Payment ? What is Nature of Payment ? What is a Challan ? What is TDS Certificate ? What is TDS Payable and TDS Deducted by Others ? What is TDS Payable and TDS Deducted by Others ? 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 Tutorial on TDS (Tax Deductable at Source)

4. TDS stands for Tax Deducted at Source. It is one of the modes of collection of taxes, in which a certain percentage of amount are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account. It is similar to "pay as you earn" scheme. It facilitates sharing of responsibility of tax collection between the deductor and the tax administration. It ensures regular inflow of cash resources to the Government. It acts as a powerful instrument to prevent tax evasion as well as expands the tax net TDS stands for Tax Deducted at Source. It is one of the modes of collection of taxes, in which a certain percentage of amount are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account. It is similar to "pay as you earn" scheme. It facilitates sharing of responsibility of tax collection between the deductor and the tax administration. It ensures regular inflow of cash resources to the Government. It acts as a powerful instrument to prevent tax evasion as well as expands the tax net What is TDS ? What is TDS ? Who is a Deductee ? Who is a Deductor ? What are the Type of Deductees ? What is Nature of Payment ? What is a Challan ? What is TDS Certificate ? What is TDS Payable and TDS Deducted by Others ? 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 Tutorial on TDS (Tax Deductable at Source)

5. What is TDS ? What is TDS ? Who is a Deductee ? Who is a Deductor ? What are the Type of Deductees ? What is Nature of Payment ? What is a Challan ? What is TDS Certificate ? What is TDS Payable and TDS Deducted by Others ? 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 Tutorial on TDS (Tax Deductable at Source) In simple words, the person from whom the tax is deducted is called Deductee. TDS is deducted at the time of payment in cash or cheque or credit to the payee's account whichever is earlier. Credit to payable account or suspense account is also considered to be credit to payee's account and TDS must be made at the time of such credit. In simple words, the person from whom the tax is deducted is called Deductee. TDS is deducted at the time of payment in cash or cheque or credit to the payee's account whichever is earlier. Credit to payable account or suspense account is also considered to be credit to payee's account and TDS must be made at the time of such credit.

6. What is TDS ? What is TDS ? Who is a Deductee ? Who is a Deductor ? What are the Type of Deductees ? What is Nature of Payment ? What is a Challan ? What is TDS Certificate ? What is TDS Payable and TDS Deducted by Others ? 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 Tutorial on TDS (Tax Deductable at Source) The person who collects the tax on behalf of the Government from the deductee. Deductor can be Principal Officer of a company for TDS purpose, including the employer in case of private employment. DDO (Drawing & Disbursing Officer), In case of Govt. Office or any officer designated as such. In the case of "interest on securities" other than payments made by or on behalf of the Central govt. or the State Government, it is the local authority, corporation or company, including the Principal Officer thereof The person who collects the tax on behalf of the Government from the deductee. Deductor can be Principal Officer of a company for TDS purpose, including the employer in case of private employment. DDO (Drawing & Disbursing Officer), In case of Govt. Office or any officer designated as such. In the case of "interest on securities" other than payments made by or on behalf of the Central govt. or the State Government, it is the local authority, corporation or company, including the Principal Officer thereof

7. What is TDS ? What is TDS ? Who is a Deductee ? Who is a Deductor ? What are the Type of Deductees ? What is Nature of Payment ? What is a Challan ? 1 1 2 2 3 3 4 4 5 5 6 6 Tutorial on TDS (Tax Deductable at Source) Type of Deductees: Type of Deductee means the title of person, firm, company or local authority from whom the tax can be deducted. Some of the deductor types are as follows: 1.Artificial Judicial Person 2.Association of Persons 3.Body of Individuals 4.Co-operative Society 5.Company Non-Resident 6.Company Resident 7.Individual/HUF Non-Resident 8.Individual/HUF-Resident 9.Local Authority 10.Partnership Firm Type of Deductees: Type of Deductee means the title of person, firm, company or local authority from whom the tax can be deducted. Some of the deductor types are as follows: 1.Artificial Judicial Person 2.Association of Persons 3.Body of Individuals 4.Co-operative Society 5.Company Non-Resident 6.Company Resident 7.Individual/HUF Non-Resident 8.Individual/HUF-Resident 9.Local Authority 10.Partnership Firm

8. What is TDS ? What is TDS ? Who is a Deductee ? Who is a Deductor ? What are the Type of Deductees ? What is Nature of Payment ? 1 1 2 2 3 3 4 4 5 5 Tutorial on TDS (Tax Deductable at Source) Nature of Payment : Nature of Payment are the different heads under which the TDS is deductable. Some of them are as follows: 1.Interest on securities/Dividends/Interest/Insurance commission 2.Winning from lottery, puzzle or games of any sort 3.Winning from horse races 4.Contracts (including work land labour contract) 5.Insurance commission 6.Payments to Non residents sportsmen or sport association 7.Commission on sale of lottery tickets and on brokerage 8.Rent 9.Fees for professional or technical services/royalty/Income on units of mutual funds/compensation on acquisition of certain immovable assets 10. Payment on Acquisition of certain immovable property Nature of Payment : Nature of Payment are the different heads under which the TDS is deductable. Some of them are as follows: 1.Interest on securities/Dividends/Interest/Insurance commission 2.Winning from lottery, puzzle or games of any sort 3.Winning from horse races 4.Contracts (including work land labour contract) 5.Insurance commission 6.Payments to Non residents sportsmen or sport association 7.Commission on sale of lottery tickets and on brokerage 8.Rent 9.Fees for professional or technical services/royalty/Income on units of mutual funds/compensation on acquisition of certain immovable assets 10. Payment on Acquisition of certain immovable property What is a Challan ? 6 6

9. What is TDS ? What is TDS ? Who is a Deductee ? Who is a Deductor ? What are the Type of Deductees ? What is Nature of Payment ? What is a Challan ? What is TDS Certificate ? What is TDS Payable and TDS Deducted by Others ? 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 Tutorial on TDS (Tax Deductable at Source) A Challan is like a voucher or an instrument used to make the Bank Payment of TDS deducted by the deductor. For making the bank payment a challan is must. The challan no is used while making payment in Bank. A Challan is prepared after the purchase invoice Havala for TDS is made. A Challan is like a voucher or an instrument used to make the Bank Payment of TDS deducted by the deductor. For making the bank payment a challan is must. The challan no is used while making payment in Bank. A Challan is prepared after the purchase invoice Havala for TDS is made.

10. What is TDS ? What is TDS ? Who is a Deductee ? Who is a Deductor ? What are the Type of Deductees ? What is Nature of Payment ? What is a Challan ? What is TDS Certificate ? What is TDS Payable and TDS Deducted by Others ? 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 Tutorial on TDS (Tax Deductable at Source) TDS Certificate is FORM NO 16 (A). A Certificate given under Section 203 of the Income-Tax Act, 1961 for Tax Deducted at source. It is given by the Deductor to the Deductee. The Certificate contains information like Name & Address of Deductor and Deductee both. PAN no of both. Assessment Year, Period, Amount paid, Summary of Payment and Date of Payment. The Quarter wise details of Tax Deducted at Source. Details of TAX Deducted and Deposited with Central Government account through Challan. It also contains the signature and designation of person responsible for tax deduction.

11. What is TDS ? What is TDS ? Who is a Deductee ? Who is a Deductor ? What are the Type of Deductees ? What is Nature of Payment ? What is a Challan ? What is TDS Certificate ? What is TDS Payable and TDS Deducted by Others ? 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 Tutorial on TDS (Tax Deductable at Source) TDS Payable: When TDS is deducted from a deductee by a deductor this becomes as TDS Payable. As this TDS that is collected has to be remitted to the Government. TDS Deducted by Others: When the opposite party deducts TDS from the payment that is done to us then the amount deducted from our receivables becomes the TDS Deducted by Others. TDS Payable: When TDS is deducted from a deductee by a deductor this becomes as TDS Payable. As this TDS that is collected has to be remitted to the Government. TDS Deducted by Others: When the opposite party deducts TDS from the payment that is done to us then the amount deducted from our receivables becomes the TDS Deducted by Others.

12. TDS Setup in Miracle Account Setup Transactions Reports E-Return Certificate Bank Payment Entry-Current Year Bank Payment Entry-Current Year Challan Entry for Current Year Challan Entry for Current Year Purchase Entry with Adjustments Purchase Entry with Adjustments Advance Payment & It’s Effects Havala Journal Voucher Entry Journal Voucher Entry Journal Voucher Entry Havala Entry & It;s Effects Purchase Entry & It’s Effects Add Party Add Duties & Taxes Account Company Setup TDS Forms Challan Entry for Previous Year Challan Entry for Previous Year Bank Payment Entry-Previous Year

13. Click on Company Setup Menu Click on Company Setup Menu Main Menu Company Setup

14. Main Menu Company Setup Double Click here or press Enter to get Yes Click here in TDS/TCS Setup to get the Description

15. Main Menu Company Setup Double Click here or press Enter for TCS/TDS Details

16. Main Menu Company Setup Select the Deductor Type Select the Deductor Category Give information about the Income Tax Ward/Circle for TDS Give information about the person who is responsible in deducting tax. Give Assessment Range as given by Govt.

17. Main Menu Give here the name of account to be created Select the Group Name of Account Select TDS here Select Tax Type here Add Duties & Taxes Account Click Ok to create the account

18. Main Menu Select Tax Type here Give here the name of account to be created Select the Group Name of Account Select TDS here Add Duties & Taxes Account

19. Main Menu Select Tax Type here Give here the name of account to be created Select the Group Name of Account Select TDS here Add Party

20. Main Menu Add Party TDS details of the Deductee

21. Main Menu Select here the account for which the TDS is deducted Add Party

22. Main Menu Select whether TDS is payable or deducted Add Party

23. Main Menu Select whether the TDS is to be calculated on Bill Amount or any Expense Add Party

24. Main Menu Select whether TDS Rate type is Default, Lower, etc. Add Party

25. Main Menu Add Party Give here the higher or lower rate to be applied on TDS

26. Main Menu Select whether Surcharge limit is ignored Add Party

27. Main Menu Select if TDS limit is to be ignored Add Party

28. Main Menu Add Party Press Tab and then click on Ok button to create the party Account

29. Main Menu Purchase Entry & It's Effects

30. Main Menu Purchase Entry & It's Effects

31. Main Menu Purchase Entry & It's Effects To see the Purchase Bill in the TDS report Select Report -> TDS -> TDS Report

32. Main Menu Purchase Entry & It's Effects Total Deductable (that is, TDS Amount which is left to be deducted) TDS is shown here TDS Amount Already Deducted The Purchase Transaction is shown here. Press Enter to see details TDS if any paid is shown in this column

33. Main Menu Purchase Entry & It's Effects Voucherwise Details are shown here for the Party and Nature of Payment

34. Main Menu Purchase Entry & It's Effects Click on Havala Button or Press (Ctrl+H) to generate Havala Havala Generation Screen is shown when Havala Button is clicked. Enter Date, Voucher Number, Narration and click OK to generate Havala Havala Generation Screen is shown when Havala Button is clicked. Enter Date, Voucher Number, Narration and click OK to generate Havala Here, as both the Vouchers are selected for Havala Generation, the accessible amount and TDS Amount will be of both the vouchers combined

35. Main Menu Purchase Entry & It's Effects Here, as only one Voucher is selected for Havala Generation, the accessible amount and TDS Amount will be of that Voucher only

36. Main Menu Purchase Entry & It's Effects Click on Havala Button or Press (Ctrl+H) from the Summary Report to Generate Havala of all the vouchers for selected Party and Nature of Payment

37. Main Menu Purchase Entry & It's Effects Here, the Total Amount of ALL the vouchers will be considered for Havala Generation

38. Main Menu Purchase Entry & It's Effects TDS Amount DEDUCTED. This is shown AFTER generating Havala

39. Main Menu Purchase Entry & It's Effects To See the Generated Havala, go to Report -> TDS -> TDS Havala List To See the Generated Havala, go to Report -> TDS -> TDS Havala List

40. Main Menu Purchase Entry & It's Effects Click on Havala Details Button or Press Enter to see the Havala Voucher Details

41. Main Menu Purchase Entry & It's Effects Here the Vouchers of the Havala are shown

42. Main Menu Journal Voucher Entry Simple Journal Entry for payment of Commission & Brokerage. Here Tax Type is selected as None.

43. Main Menu Journal Voucher Entry Here Deductable TDS Amount of Journal voucher is shown.

44. Main Menu Havala Journal Voucher Entry Here Tax Type is selected as TDS Here, TDS Helper is shown to deduct the TDS here itself

45. Main Menu Havala Journal Voucher Entry TDS is Deducted from the Party Amount and a separate entry for TDS Account is made automatically

46. Main Menu Havala Journal Voucher Entry Complete the opposite account entry and press OK to save the Voucher

47. Main Menu Havala Journal Voucher Entry In TDS Havala List, the Havala Voucher Entry is shown TDS Amount Deducted

48. Main Menu Advance Payment Entry & It’s Effects In Tax Type, select TDS Advance Payment

49. Main Menu Advance Payment Entry & It’s Effects If the Party is TDS Party, then TDS Helper will be shown to deduct the TDS here itself

50. Main Menu Advance Payment Entry & It’s Effects The TDS Amount is deducted from the bank account and added to the TDS Account entry automatically

51. Main Menu Advance Payment Entry & It’s Effects Advance Payment Voucher is shown in the Havala List with the TDS Amount shown here.

52. Main Menu Purchase Voucher with Adjustment Here, 50000 is entered as Brokerage Amount. TDS will be considered on this Expense Amount (as configured in the Party)

53. Main Menu Purchase Voucher with Adjustment Advance Payment Adjustment option is shown here

54. Main Menu Select the Nature of Payment Select the amount on which the calculation is done i.e. Voucher amount or Expense This shows the Accessible Amount Purchase Voucher with Adjustment

55. Main Menu Purchase Voucher with Adjustment Advance Payment Voucher Number against which adjustment is being done Pending Amount (that is, amount left to be adjusted) of the Advance Payment Voucher Amount to be adjusted

56. Main Menu Total Accessible Amount of current Voucher Purchase Voucher with Adjustment Pending Amount of Current Voucher Total Adjusted Amount of current Voucher

57. Main Menu TDS Amount NOT Adjusted is shown here. That is, Havala can be generated for this amount The Adjusted TDS Amount is shown as Deducted Purchase Voucher with Adjustment

58. Main Menu Here, press Enter on the Advance Payment Voucher Purchase Voucher with Adjustment

59. Main Menu The Purchase Voucher which has been adjusted is shown here in the Advance Payment Voucher’s Details Purchase Voucher with Adjustment

60. Main Menu TDS Challan Entry To See TDS Challan go to Report -> TDS -> TDS Challan To See TDS Challan go to Report -> TDS -> TDS Challan

61. Main Menu TDS Challan Entry Click Add button to prepare Challan or press Insert Key Nature of Payment List is shown here. Select Nature of Payment to generate challan for it

62. Main Menu TDS Challan Entry After selection press Challan button or Press Ctrl + L to prepare TDS Challan Select Havala Vouchers for which Challan is to be Prepared

63. Main Menu TDS Challan Entry Give Challan Date and Challan No. here and press OK button to generate Challan

64. Main Menu TDS Challan Entry Challan is shown in the challan list Click Edit Challan or Press Enter to Edit Challan

65. Main Menu TDS Challan Entry Deselect a Havala Voucher of challan to remove it from the Challan or Select a Pending Voucher to Add it to the Challan and then press Save & Exit to save Challan

66. Main Menu Adjustment for Previous Year Challan Here challan for Vou No Hav/2 is not prepared and thus transferred to new year using Utility  Year End  New Fin. Yr

67. Main Menu Adjustment for Previous Year Challan This is the TDS Challan screen for new financial year Click on this button or Press Ctrl+Insert for adding previous year havala for challan

68. Main Menu Adjustment for Previous Year Challan Here it shows the Nature of Payment for challan preparation

69. Main Menu Adjustment for Previous Year Challan 1) The previous financial year transaction is shown here for challan preparation 3) The challan no is shown here. 2) After selecting the Havala using Enter or clicking Select/Unselect button click this Challan button or Press Ctrl+L

70. Main Menu Adjustment for Previous Year Challan The Blue coloured transaction shows the previous year challan and the normal is of the current financial year transaction

71. Main Menu TDS Bank Payment To View TDS Bank Payment List go to Report -> TDS -> TDS Bank Payment To View TDS Bank Payment List go to Report -> TDS -> TDS Bank Payment

72. Main Menu TDS Bank Payment Press Insert or Click Add to make Bank Payment

73. Main Menu TDS Bank Payment Press Enter key or Click Select/Unselect to Select multiple Challans for which Payment is to be made.. Press Enter key or Click Select/Unselect to Select multiple Challans for which Payment is to be made.. After selecting challan, Click Bank Payment or Pres Ctrl + B to make the Payment

74. Main Menu TDS Bank Payment The Bank Payment voucher is opened for making payment on Challan Enter the Bank Name Give the BSR Code of Bank here Select Bank Account and enter Cheque Number in the first entry Both the Enteries above are made automically. Only Bank Acount and Cheque No. are to be entered

75. Main Menu TDS Bank Payment Bank Payment Voucher is shown in the Bank Payment Voucher List here Click on Bank Payment Detail or Press Enter to see Payment Voucher Details

76. Main Menu TDS Bank Payment Deselect a Challan Voucher of Payment to remove it from the Payment Voucher or Select a Pending Challan to Add it to the Payment Voucher and then press Save & Exit to save Payment Voucher

77. Main Menu TDS Bank Payment Payment Voucher has effect in the TDS Report. Here the amount is shown as Paid TDS after Bank Payment is done

78. Main Menu Adjustment for Previous Year Challan’s Bank Payment Click this button or Press Ctrl+Insert to add previous year pending tds payment voucher

79. Main Menu Adjustment for Previous Year Challan’s Bank Payment Select the challan using Enter key or by clicking Select/Unselect button After selecting press Bank Payment Button or Press Ctrl+B

80. Main Menu Adjustment for Previous Year Challan’s Bank Payment Here it shows the Bank Payment Voucher and the bank details

81. Main Menu Adjustment for Previous Year Challan’s Bank Payment The Blue coloured transaction shows the previous year Voucher for payment and the normal is of the current financial year transaction

82. Main Menu TDS Certificate To View the Certificates, go to Report -> TDS -> TDS Certificate To View the Certificates, go to Report -> TDS -> TDS Certificate

83. Main Menu TDS Certificate Click Add button or press Insert to Add TDS Certificate

84. Main Menu TDS Certificate Enter the Date Range for which Certificate is to be generated Select the Parties for which Certificates are to be generated. Enter the Certificate Number here Click Ok to generate certificates

85. Main Menu TDS Certificate Certificates are generated Click Print button or press Ctrl + P to Print the Certificate

86. Main Menu TDS Certificate Here, Form No 16 A is selected Click Ok button or press Ctrl + Enter

87. Main Menu TDS Certificate Here Form no. 16 A of TDS is shown

88. Main Menu TDS E-Return To Generate E-Return, go to Report -> TDS -> TDS E-Return To Generate E-Return, go to Report -> TDS -> TDS E-Return

89. Main Menu TDS E-Return Select Form 26Q/27Q for which E- Return is to generated E-Return Generation Date E-Return Quarter Enter the other required information and click Create to generate E-Return File

90. Main Menu TDS E-Return E-Return File Generated

91. Main Menu TDS E-Return E-Return File Example

92. Main Menu TDS Forms To Print TDS Forms, go to Report -> TDS -> TDS Forms To Print TDS Forms, go to Report -> TDS -> TDS Forms

93. Main Menu TDS Forms The list of various TDS forms is shown here

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