Create a Tax Ledger

Creating Party Ledger

To create a Tax Ledger

Go to Gateway of Tally> Accounts Info.> Ledgers> Create

• Enter theName of the Tax Ledger e.g. TDS – Contractors
• SelectDuties & Taxes from the List of Groups in the Under
• InType of Duty /Tax field select TDS from the Types of Duty/Tax list
• InNature of Payment field, select Payment to Contractors (Advertisement Contractors) from the List of TDS Nature of Payment.
• SetInventory values are affected to No

• PressEnter to accept and save.

Creating a TDS Party Ledger

To create a Party Ledger grouped under Sundry Creditors

Go to Gateway of Tally> Accounts Info.> Ledgers> Create Set Up

In F12: Configure (Ledger Configuration):

• SetAllow Advanced entries in Masters to Yes
• SetUse Addresses for Ledger Accounts to Yes

In the Ledger creation screen:

• Enter theName of the Party Ledger e.g. Pheonix Agencies.
• SelectSundry Creditors from the List of Groups in the Under
• SetMaintain balances bill-by-bill to
• Enter theDefault Credit Period, if required.
• SetIs TDS Deductable to
• In theDeductee Type field, select Association of Persons from the List of Deductee Type.

• Enter theMailing Details
• UnderTax Information enter the PAN/IT No. (PAN/IT No. is mandatory for e-TDS). PAN is a 10 Digit Alphanumeric Number allotted by the Income Tax Department.

• In theName on PAN/IT No. field, specify the name of the assessee mentioned on the PAN