Tax Deducted at Source (TDS) is a method used by governments to collect taxes at the point of income generation. Under this system, a specified percentage of the payment is deducted by the payer (such as an employer, contractor, or financial institution) before the payment is made to the payee (such as an employee, freelancer, or service provider). The deducted amount is then deposited with the government on behalf of the payee.

TDS is applicable to various types of income, including salaries, interest, rent, professional fees, and commission. The rate of TDS varies depending on the nature of the payment and the applicable tax laws. The purpose of TDS is to ensure a steady inflow of revenue for the government and to reduce the risk of tax evasion. In our system, we offer options for TDS and RCM. Below, we discuss these options and how they are applied to supplier invoices or direct invoices.

Once enabled, an additional link for "TDS Settings" will appear under Taxes -> Settings. To add a new TDS, click the "Add New" button. A popup window titled "Add TDS Maintenance" will appear. Fill in the following fields:

After that, go to Suppliers -> New -> Supplier. Here, you will find the TDS Class dropdown and the RCM checkbox options.so with this we are applying these options aganist each supplier, if needed.

When you navigate to Purchases -> New -> Direct Invoice or Supplier Invoice, you'll see the TDS class in the summary area at the bottom. This TDS dropdown appears when you select a supplier that has been assigned a TDS class. After you create invoice, you can get this data in view of it,