Track TDS deductions and generate Form 16A certificates

Configure TDS rules, auto-deduct tax on vendor payments, generate Form 16A certificates, and view your TDS liability summary in Aczen Bilz.

Tax Deducted at Source (TDS) requires you to deduct a percentage of certain payments to vendors or service providers and deposit it with the government on their behalf. Aczen Bilz automates this by letting you define TDS rules for each payment category once, then applying the correct deduction every time you record a qualifying payment. Your TDS liability, certificates, and reports are available in one place whenever you need them.

When TDS applies

TDS applies when you make payments that exceed the threshold specified for that payment category under the Income Tax Act. Common examples:

• Professional or technical fees paid to a consultant
• Rent paid for office or warehouse space
• Payments to contractors for work or services
• Commission or brokerage paid to agents

TDS thresholds vary by section. For example, professional fees (Section 194J) have a threshold of ₹30,000 per year per payee, while rent (Section 194I) has a threshold of ₹2,40,000 per year. Payments below the threshold do not require deduction. Consult your CA or the Income Tax Act for the current threshold for each section.

Pre-loaded TDS categories

Aczen Bilz comes pre-loaded with common Indian TDS categories. You can use these as-is or add your own.

Category	Rate	Section
Professional Fees	10%	194J
Contractor Payments	2%	194C
Rent Payments	10%	194I
Commission and Brokerage	5%	194H
Interest Payments	10%	194A
Freight and Transport	1%	194C
Advertising	2%	194C
Other Services	2%	194J

Setting up TDS rules

1. Open TDS Management

   Go to Accounting → TDS Management in the sidebar.

2. Go to TDS Setup

   Select the TDS Setup tab. You will see the pre-loaded TDS categories.

3. Review and edit default rules

   Check that the rates match your current obligations. If a rate has changed or a specific vendor arrangement requires a different rate (for example, a vendor with a lower deduction certificate issued by the tax department), click the edit icon next to that category and update the rate.

4. Add a custom category (optional)

   If you make a type of payment not covered by the default list, click Add Category. Enter:

   • Category name (for example, “Director Sitting Fees”)
   • TDS rate (0–100%)
   • Description and the applicable Income Tax section

   The new category is immediately available when recording transactions.

Recording a TDS transaction

When you make a vendor payment that is subject to TDS, record it in Aczen Bilz so the deduction is tracked:

1. Open the transaction form

   From the TDS Management overview, click Record New Transaction.

2. Fill in payment details

   Enter:

   • Vendor name and PAN — the PAN is required for issuing Form 16A
   • Transaction amount — the gross amount before deduction
   • TDS category — select from your configured rules; the rate auto-fills
   • Transaction date
   • Optionally, a description and a TDS certificate number if you already have one
3. Confirm the calculated amounts

   Aczen Bilz calculates in real time:

   TDS Amount  = Transaction Amount × TDS Rate%
   Net Payable = Transaction Amount − TDS Amount
   

   Verify these figures and click Save. The transaction is added to your TDS ledger.

Viewing your TDS liability summary

The Overview tab in TDS Management shows a dashboard of your TDS activity:

• Total TDS deducted across all categories
• Net payable amounts per vendor
• Category-wise breakdown

Switch to the Reports tab to filter by date range, quarter, or category. You can export the report as CSV or Excel for use when filing TDS returns (Form 24Q for salary, Form 26Q for non-salary payments).

Generating TDS certificates (Form 16A)

Form 16A is the TDS certificate you issue to a vendor showing the amount deducted and deposited on their behalf.

1. Go to Reports

   In TDS Management, open the Reports tab.

2. Filter by vendor and period

   Select the vendor and the quarter for which you want to generate the certificate.

3. Export

   Click Export PDF to download the certificate. The certificate includes the vendor’s PAN, the total deducted amount, and transaction details for the selected period.

You must deposit TDS with the government by the 7th of the following month before issuing Form 16A. Aczen Bilz tracks what you have deducted, but the actual deposit to the government is done through TRACES/Challan 281 outside the platform.

TDS filing deadlines

Obligation	Due date
TDS deposit	7th of the following month (30th April for March)
Quarterly TDS return (Form 26Q)	31st July, 31st Oct, 31st Jan, 31st May
Form 16A issuance	15 days from the date the TDS return is due

Late filing of TDS returns attracts a penalty of ₹200 per day under Section 234E (subject to a maximum of the TDS amount), plus interest at 1.5% per month on the deducted amount under Section 201. File on time to avoid these charges.