How To Book TDS While Making Receipt/Payment | How To Withhold Tax While Creating Receipt/Payment | Tax Withheld

In some cases we need to book TDS at the time of making receipt or payment vouchers. For that, you need to follow these steps:

1. While creating Receipt from Customer/Payment to Supplier transaction, you need to select the invoice against which you are receiving/making payment.

2. Select Tax Deducted option. In case of Receipt, select Tax Deducted Receivable. If you are making Payment, then select Tax Deducted Payable.
   This account is created by default and is under head Current Assets or Current Liabilities, depending on the voucher you created.

3. Enter the tax amount or percentage.

4. Finally, save the voucher.