{"id":4207,"date":"2026-05-29T20:54:04","date_gmt":"2026-05-29T20:54:04","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4207"},"modified":"2026-05-29T20:54:04","modified_gmt":"2026-05-29T20:54:04","slug":"tds-zoho-books","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/tds-zoho-books\/","title":{"rendered":"TDS (Tax Deducted at Source)"},"content":{"rendered":"<style>.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">TDS (Tax Deducted at Source) in Zoho Books is the Indian income tax mechanism where a business deducts a prescribed percentage from vendor payments for specified categories and deposits it with the government, with Zoho Books automating the calculation and tracking the TDS liability.<\/div>\n<div class=\"gt-section\">\n<h2>Setting Up TDS in Zoho Books<\/h2>\n<p>Go to Settings, then Taxes, and enable TDS. Zoho Books provides a list of standard TDS sections from the Income Tax Act: 194A (interest), 194C (contractors), 194D (insurance commission), 194H (commission), 194I (rent), 194J (professional fees), 194Q (purchase of goods), and others. For each applicable section, the rate is pre-configured but can be adjusted if the vendor has a lower deduction certificate (Form 13). Assign the relevant TDS section to each vendor record.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>TDS on Vendor Bills in Zoho Books<\/h2>\n<p>When you record a bill from a TDS-applicable vendor, Zoho Books shows the TDS section and calculated TDS amount. The bill entry debits the expense account for the full bill amount, credits Accounts Payable for the net amount (bill minus TDS), and credits TDS Payable for the deducted amount. When you make the payment, you pay only the net amount to the vendor and separately deposit the TDS amount to the government via an online challan.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>TDS Reports in Zoho Books<\/h2>\n<p>Zoho Books generates several TDS reports: the TDS Summary shows total TDS deducted by section for a period, the TDS Payable report shows the amount due to be deposited, and the TDS Detail report shows each transaction with the amount deducted. These reports feed into Form 26Q (TDS on non-salary payments), which your CA files quarterly. Zoho Books exports the data in the format required for 26Q preparation.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Industry:<\/strong> IT Services \u2014 A Pune IT company pays a law firm INR 5 lakhs for legal advisory services. Under Section 194J (professional fees), TDS is deducted at 10%, meaning INR 50,000 is withheld. The bill in Zoho Books shows INR 5 lakhs expense, INR 4.5 lakhs payable to the vendor, and INR 50,000 to TDS Payable. The vendor receives INR 4.5 lakhs and claims the INR 50,000 TDS credit in their income tax return via Form 26AS.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/tds-section-zoho-books\/\" class=\"gt-related-pill sp-content-link\">TDS Section<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/form-26q-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Form 26Q<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/bill-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Bill<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/vendor-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Vendor<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is TDS in Zoho Books?<\/strong><\/p>\n<p>TDS (Tax Deducted at Source) in Zoho Books is the mechanism by which a business deducts income tax from vendor payments for specified categories and remits it to the Income Tax department on behalf of the vendor.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>How do I set up TDS in Zoho Books?<\/strong><\/p>\n<p>Go to Settings, then Taxes, enable TDS, add applicable TDS sections with rates, and assign the relevant section to each vendor. Zoho Books then automatically calculates and deducts TDS when you record bills for those vendors.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>TDS (Tax Deducted at Source) in Zoho Books is the Indian income tax mechanism where a business deducts a prescribed percentage from\u2026<\/p>\n","protected":false},"template":"","meta":{"seo_title":"TDS (Tax Deducted at Source) | Zoho Books Glossary","seo_description":"TDS in Zoho Books automates tax deduction on vendor payments. Learn how to set up TDS sections, deduct tax on bills, and generate TDS reports.","seo_keyword":"tds zoho books","seo_faqs":"[{\"q\": \"What is TDS in Zoho Books?\", \"a\": \"TDS (Tax Deducted at Source) in Zoho Books is the mechanism by which a business deducts a percentage of income tax from payments made to vendors for services, interest, rent, and other specified payments, and remits it to the Income Tax department on behalf of the vendor.\"}, {\"q\": \"How do I set up TDS in Zoho Books?\", \"a\": \"Go to Settings, then Taxes, and enable TDS. Add the applicable TDS sections (such as Section 194C for contractors or Section 194J for professionals) with the TDS rates. Assign the relevant TDS section to each vendor contact. When you record a bill for that vendor, Zoho Books automatically calculates and deducts TDS from the payment amount.\"}]","term_type":"Technical","glossary_related":"","glossary_links":""},"glossary_category":[1246],"class_list":["post-4207","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-books"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4207"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}