How to calculate TDS on Lower/Zero rate in Tally ERP 9 Release 5?

To calculate TDS on Lower rate or zero rate do the following steps

Go to Gateway of Tally > Accounts info > ledgers > Alter > Party master

e.g. Mr Ramu

In party master press F12 and enable the option “Allow advanced entries in TDS master” and accept the screen.

Ledger configuration

From party master screen enable the option “Use Advanced TDS entries” and press enter.

Party ledger alteration

Enable the option “Set/Alter Zero/lower Deduction”.

1) Select nature of payment

2) Select the section 197: Lower deduction or 197A : Zero deduction

3) Provide Certificate number.

4) Mention applicable from and to date. e.g.: 1-4-2015 to 31-3-2016.

5) Mention TDS lower rate e.g.:- default rate is 10%. Mention rate as 5%.

Zero or lower deduction details

Accept and save.

  How to configure TDS to pass transaction in Tally ERP9 Release 5?

Now when you pass TDS transaction for the applicable date i.e 1-4-2015 to 31-3-2016 TDS will deduct 5% instead of 10%.

How to calculate TDS on Lower/Zero rate in Tally ERP 9 Release 5?
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