{"id":4208,"date":"2026-05-29T20:54:06","date_gmt":"2026-05-29T20:54:06","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4208"},"modified":"2026-05-29T20:54:06","modified_gmt":"2026-05-29T20:54:06","slug":"tds-section-zoho-books","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/tds-section-zoho-books\/","title":{"rendered":"TDS Section"},"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\">A TDS section in Zoho Books is the specific Income Tax Act provision under which tax is deducted from a vendor payment, defining the applicable rate and the nature of payment being covered, configured per vendor for automatic deduction on bills.<\/div>\n<div class=\"gt-section\">\n<h2>Key TDS Sections in Zoho Books<\/h2>\n<p>Section 194C covers payments to contractors for carrying out any work, at 1% for individuals or HUFs and 2% for companies. Section 194J covers professional or technical services (doctors, lawyers, CAs, engineers, management consultants) at 10%. Section 194I covers rent payments at 10% for land and buildings and 2% for plant and machinery. Section 194H covers commission and brokerage at 5%. Section 194A covers interest payments other than interest on securities at 10%. Section 194Q, added for high-value goods purchases above INR 50 lakhs per year, is at 0.1%.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Assigning TDS Sections to Vendors in Zoho Books<\/h2>\n<p>Open a vendor contact record in Zoho Books and find the TDS Settings section. Toggle &#8220;TDS Applicable&#8221; and select the relevant TDS section. You can also set a lower deduction rate if the vendor holds a Form 13 certificate from the Income Tax department. From the next bill onwards, Zoho Books calculates TDS at the configured rate automatically. If a vendor qualifies for multiple TDS sections (for example, a consultant who also handles rent), create separate bills for each payment type and select the appropriate section on each.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>TDS Threshold Limits<\/h2>\n<p>Most TDS sections have annual payment thresholds below which TDS is not required. For example, Section 194J TDS applies only if the total payments to that vendor exceed INR 30,000 in a financial year. Zoho Books tracks cumulative payments per vendor per section and can alert you when the threshold is crossed. Review the threshold settings for each section during initial Zoho Books setup to avoid under-deduction or over-deduction.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Industry:<\/strong> Real Estate \u2014 A Pune real estate company pays INR 2.5 lakhs per month in office rent to its landlord. Under Section 194I, TDS at 10% is deducted monthly. The Zoho Books vendor record has Section 194I assigned. Each monthly rent bill automatically shows a TDS deduction of INR 25,000, and the landlord receives INR 2.25 lakhs per month after deduction.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/tds-zoho-books\/\" class=\"gt-related-pill sp-content-link\">TDS<\/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\/vendor-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Vendor<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/bill-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Bill<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is a TDS Section in Zoho Books?<\/strong><\/p>\n<p>A TDS section in Zoho Books is the Income Tax Act provision (such as 194C or 194J) that defines the TDS rate for a type of payment. Assigning the correct section to a vendor ensures Zoho Books deducts the right percentage from their payments.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>What are the common TDS sections used in Zoho Books?<\/strong><\/p>\n<p>Common sections include 194C (contractors), 194J (professional fees at 10%), 194I (rent at 10%), 194H (commission at 5%), and 194Q (high-value goods purchases at 0.1%).<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A TDS section in Zoho Books is the specific Income Tax Act provision under which tax is deducted from a vendor payment,\u2026<\/p>\n","protected":false},"template":"","meta":{"seo_title":"TDS Section | Zoho Books Glossary","seo_description":"TDS sections in Zoho Books define the Income Tax Act provision for each type of payment. Learn the common sections and how to assign them to vendors.","seo_keyword":"tds section zoho books","seo_faqs":"[{\"q\": \"What is a TDS Section in Zoho Books?\", \"a\": \"A TDS section in Zoho Books is the specific provision of the Income Tax Act (such as Section 194C, 194J, or 194I) that applies to a particular type of payment. Each section has a prescribed TDS rate, and assigning the correct section to a vendor ensures Zoho Books deducts the right percentage from their payments.\"}, {\"q\": \"What are the common TDS sections used in Zoho Books?\", \"a\": \"Common TDS sections in Zoho Books include: Section 194C (1% for individual contractors, 2% for company contractors), Section 194J (10% for professional and technical services), Section 194I (10% for rent of land and buildings, 2% for machinery), Section 194H (5% for commission and brokerage), and Section 192 (salary payments at slab rates).\"}]","term_type":"Technical","glossary_related":"","glossary_links":""},"glossary_category":[1246],"class_list":["post-4208","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-books"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4208","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=4208"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}