Many times situation arise when you raise an invoice to your client, on which your client is requires to deduct TDS and pays the balance amount to you.The amount so deducted by your client, he is liable to pay it to the Income Tax department, hence its a receivable for you which you have to claim from the Income Tax Department and not from your client.
Now, we will see how to handle this situation in Accounts and Tally 9 ?
Suppose you have issue a bill of Rash. 1 Lac on which client deducted TDS of Rs. 1000 and pays you Rs. 99 K then the entry in your books will be as under :
Dr. Bank Account Rs. 99 K
Dr. TDS Receivable Account
( This ledger should be open under the Group Loans and Advances ) Rs.1 K
Cr. Client Account Rs. 1 Lac
The result will be that your client Account will be settled off and the amount will be shown as receivable in the Balance sheet which you have to claim from the Income Tax department. You have to obtain Form No. 16A From your client in this regard in support of your claim.
I hope this post will be helpful to you.
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