In this post, you will learn how to enter deduction details in Saral TDS software step by step with screenshots.
Step-1: Firstly, go to the required form (i.e., Form 24Q/26Q/27Q) and select the quarter for which the details are to be entered. Under the particular quarter, select Deduction Details.
The below screen will be displayed.
Step-2: Select the Name of the Deductee and Section applicable from the drop-down. Enter the payment amount and date of payment. The Rate of Tax to be deducted will be auto-populated depending upon the section selected.
After entering all the fields, save the details. If you want to change the Tax amount, click on Edit and change the Tax amount.
Step-3: In case the Deductee/payee has not provided PAN to the Deductor/payer, then the Tax rate will be 20% or actual specified rate whichever is higher. Also in such case, a flag has to be set with the Deduction stating that “PAN not available – Higher Rate (20%)”.
This has to be set at Remarks for Deduction. Below shown is the deduction entry for NON-PAN case.
In case the Deductee/payee wants a reduction in their rate being deducted, then they have to submit Lower/Nil deduction certificate received for the Assessing Officer. If such certificate is given, then a flag has to be set with the Deduction stating that “Lower Deduction/ No Deduction u/s 197” with the Certificate number mentioned in the certificate.
This has to be set at Remarks for Deduction. Below shown is the deduction entry for Lower Deduction Certificate case.
The Deductor/payer has to verify the following details in the given certificate:
- PAN of the Deductee – This has to be the same as available with Deductor
- TAN of the Deductor
- Financial Year for which the certificate is given
- The time period for which the certificate is given
- TDS Sections for which the certificate is applicable
- Threshold limit of certificate – Amount of Payment till which the certificate holds good
- Certificate Number
In case, the Deductee/Payee is a transporter and has provided a valid PAN, any income arising out of Contractor will not attract TDS. Then payer will not deduct tax on such payment. Also in such case, a flag has to be set with the Deduction stating that “Transporter with Valid PAN (0%)”.
This has to be set at Remarks for Deduction. Below shown is the deduction entry for Transporter case.
Only payment made u/s 194C will be eligible for above mentioned Nil Deduction. All other section payment will attract TDS at a normal rate.
For Deductor who is a bank, the payee can submit self-declared in Form 15G/15H, informing the payer not to deduct TDS. In such cases, the payer will set the flag “No deduction u/s 197A” in the deduction.
This has to be set at Remarks for Deduction. Below shown is the deduction entry for Form 15G/H case.
Form 15G/H UIN has to be given for such declaration.
Point to note is that, if the flag is not set or wrongly set, then the deduction will not be considered during the TDS return filing which in turn will lead to Default notice from the department.
This ends our post on entering deduction details in Saral TDS. If you have any queries, please write to us at firstname.lastname@example.org.