TDS Software | TDS Auto-Deduction

TDS deducted at the line. Mixed bills handled correctly.

Each bill line is assigned a TDS section (194C, 194J, 194I, 194Q, 194O), a rate and an applicable threshold based on its description, GL coding and vendor type. Vendor PAN verified live with CBDT. Section 197 LDC honoured at the line.

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How it works

Line-level TDS, applied at posting.

Step 01

Section + rate per line

Line description, GL and vendor type drive the section. 194C contractor, 194J professional, 194I rent, 194Q goods, 194O e-commerce all resolved at the line.

Step 02

PAN verified live

Vendor PAN checked against CBDT's PAN status API at capture. Active or inoperative drives the surcharge bucket and Section 206AA/AB rate.

Step 03

LDC applied within window

Section 197 lower-deduction certificate (section, rate, validity) loaded per vendor. Lower rate applied to bills posted within the certificate window.

Step 04

Threshold tracker drives cut-over

Section thresholds (₹30K for 194J, ₹1L for 194C, ₹50L for 194Q) tracked per vendor + section across the FY. The line where the threshold breaches is the line where deduction starts.

What the system does

Capability, input, output.

Capability	Input	Output
Section + rate engine	Line description + GL + vendor type	Section, rate and threshold per line
Live PAN check	Vendor PAN	Active / inoperative + surcharge bucket
LDC handling	Cert section + rate + validity	Override at line per cert window
FY threshold tracker	Per-vendor, per-section YTD totals	Threshold-breach flag at the line
Mixed-section bill	Multi-line invoice with different GLs	Multi-section TDS computed per line
Section 206AA / 206AB	Inoperative PAN + non-filer status	Higher-rate deduction applied

Section + rate engine

Input

Line description + GL + vendor type

Output

Section, rate and threshold per line
Live PAN check

Input

Vendor PAN

Output

Active / inoperative + surcharge bucket
LDC handling

Input

Cert section + rate + validity

Output

Override at line per cert window
FY threshold tracker

Input

Per-vendor, per-section YTD totals

Output

Threshold-breach flag at the line
Mixed-section bill

Input

Multi-line invoice with different GLs

Output

Multi-section TDS computed per line
Section 206AA / 206AB

Input

Inoperative PAN + non-filer status

Output

Higher-rate deduction applied

Compliance + integrations

TDS done at the line, by the section.

Sections 194C, 194J, 194I, 194Q, 194O, 195, 197, 206AA and 206AB all applied per the law. Section 206AA + 206AB combined for inoperative-PAN / non-filer rates.

Regulations we work within

Sections 194C / 194J / 194I

Section assigned per line with the right rate and threshold.
Section 194Q + 206C(1H)

Buyer/seller turnover cross-checked to resolve which side deducts vs collects.
Section 197 LDC

Lower-deduction certificate applied per vendor and validity window.
Section 206AA + 206AB

Higher-rate deduction for inoperative PAN or non-filer vendors.

Connects to

CBDT Live PAN status API
Tally Prime Bidirectional TDS sync
Zoho Books Native connector

TDS Auto-Deduction FAQ

What buyers ask.

How does the system decide 194C vs 194J on the same bill?

Line description, GL coding and vendor primary service category drive the default. Rules configurable per organisation; AP team can override at the line with reason captured in the audit trail.

PAN inoperative. What rate applies?

Section 206AA + 206AB combined: an inoperative PAN attracts the higher of (a) 20% or (b) double the normal rate. The system applies it automatically when the live CBDT check returns inoperative status.

Surcharge and cess. Per vendor profile?

Yes. Surcharge brackets (10%, 15%, 25%, 37%) and cess (4%) applied based on vendor type (individual, firm, company), residency status and PAN status. Auto-applied at the line.

Related features

Post a mixed bill. See the TDS resolved per line.

Connect one entity, free. Post a bill with a 194C line and a 194J line. Watch the deduction resolve at each line, with PAN status checked live.