Tax Deducted at Source (TDS) & Tax Collected at Source (TCS)

1.1 Learning Objectives
1.2 Introduction & Basic Concepts of TCS
1.3 TCS in Tally
1.4 Recording TCS Compliant Transactions

• 1.4.1 Sale of TCS Goods on Accrual Basis
  • 1.4.1.1 Purchase of TCS Goods – Fixed Assets
  • 1.4.1.2 Sale of TCS Goods on Accrual Basis
• 1.4.2 Sale of TCS Goods at Lower Rate/Nil Rate
• 1.4.3 Sale of TCS Goods at Higher Tax Rate (Under Section 206CCA)
• 1.4.4 Accounting TCS Exemption for Buyers Deducting TDS
• 1.4.5 TCS on Transfer of Right to Use
• 1.4.6 Accounting for TCS on Advance Receipts and Adjusting Advances towards Bill

1.5 TCS Payment to Department

• 1.5.1 Payment of Tax to the Income Tax Department and Generating TCS Challan
• 1.5.2 Interest Payment to Income Tax Department on Delayed TCS Tax Payment

1.6 TCS Reports
1.7 E-Return
1.8 Maintaining Books of Accounts as a Collectee
1.9 Conclusion
1.10 e-Quiz

2.1 Introduction
2.2 Activation of TDS in TallyPrime
2.3 Recording TDS Compliant Transactions

• 2.3.1 Booking of Expenses & deducting TDS in the Journal Voucher
• 2.3.2 TDS Transaction for Purchase of Software
• 2.3.3 TDS on Sales Commission and Deducting TDS
• 2.3.4 Accounting TDS on Capital Expenditure
• 2.3.5 Accounting for TDS on Advance Payments and Adjusting Advances towards Bill
• 2.3.6 Purchase Escalation after Recording TDS Transaction
• 2.3.7 Reversal/Cancellation of Expenses with TDS
• 2.3.8 TDS on Works Contract attracting GST
• 2.3.9 TDS on Payments to Non-Residents (DTAA)
• 2.3.10 TDS on Income from Foreign Currency, Bonds or Shares of India Company
• 2.3.11 Accounting Direct Payment and deducting TDS
• 2.3.12 Accounting Multiple Expenses and Deducting TDS later
• 2.3.13 TDS on Reimbursement of Expenses (Pure Agent)

2.4 TDS Payment to Department

• 2.4.1 TDS Outstanding
• 2.4.2 Payment of Tax to the Income Tax Department
• 2.4.3 Generating TDS Challan (ITNS 281)
• 2.4.4 Interest Payment to Income Tax Department on Delayed Tax Payment

2.5 TDS Report

• 2.5.1 Challan Reconciliation
• 2.5.2 Form 26Q
• 2.5.3 Form 27Q

2.6 E-Return

• 2.6.1 Form 26Q
• 2.6.2 Form 27Q
• 2.6.3 TRACES Portal

2.7 Maintaining Books of Accounts as a Deductee
Conclusion
Key Takeaways
Shortcut Keys
Practice Exercises