Benefits
Why It Matters
The problem
Is TDS still a quarter-end scramble?
Deductions remembered too late
TDS (tax deducted at source) is income tax the payer cuts from certain payments and deposits for the payee. If it isn't deducted when you pay, you may owe it yourself, with interest.
Different sections, different rates
Contractor payments, rent, professional fees and goods purchases each have their own rules and thresholds. Tracking them in a register is slow and easy to get wrong.
Returns built from scattered data
When deductions are noted in a diary or spreadsheet, preparing the quarterly TDS return means piecing together vendor, amount and section all over again.
How it works
How TDS and TCS work in hisabkitab
1
Mark the party
Set the TDS nature for suppliers such as contractors, landlords or consultants once in the party details.
2
Book the bill or payment
When you record the purchase or payment voucher, hisabkitab applies the TDS for that nature and shows the net payable.
3
Track TCS on sales
Where TCS (tax collected at source by the seller) applies, record it on the sale and keep it separate from GST.
4
Pull the reports
Open the TDS Report or TCS Report for the quarter, review deductee-wise totals and share them for filing.
Capabilities
What's included
Voucher-level TDS
TDS is applied on the transaction itself, so the ledger, the payable and the deduction always agree.
Common sections supported
Payments to contractors, professional or technical fees, rent, purchase of goods above the threshold and interest, using the familiar 194C, 194J, 194I, 194Q and 194A categories.
New Act ready
The TDS/TCS module has been updated for the renumbered sections of the Income-tax Act, 2025.
TDS Report
Deductee-wise and section-wise deductions for the period, ready for the quarterly TDS return.
TCS Report
Tax collected at source on sales, listed party-wise for the period.
TDS from purchase bills on Advance
AI purchase bill OCR reads TDS details from supplier invoices along with GSTIN, items and tax.
Use cases by industry
Who uses it, and how
IT services and agencies
A digital agency in Pune pays freelance designers and a hosting consultant. TDS on professional fees is applied on the payment voucher and shows up in the quarter's TDS Report.
Construction contractor
A civil contractor pays sub-contractors every fortnight. TDS on contractor payments is deducted on each payment and the net amount is what goes out of the bank.
Startup renting an office
A startup in Bengaluru books monthly office rent with TDS on rent applied automatically, so the landlord's ledger shows gross rent, TDS and net paid.
Large trader buying goods
A grain trader whose purchases from one supplier cross the threshold for TDS on purchase of goods tracks the deduction at voucher level instead of in a separate register.
Before vs after
Before hisabkitab, and after
TDS noted in a diary
TDS applied on the voucher itself
Calculating net payable on a calculator
Net amount shown before you pay
Rebuilding deductee lists every quarter
TDS Report ready for the period
TCS mixed up with GST
TCS tracked separately with its own report
TDS and TCS handling with the TDS Report and TCS Report is available on all three paid plans, starting with Launch (₹2,999/year, exclusive of 18% GST). Reading TDS details from supplier bills with AI purchase bill OCR is part of Advance (₹6,999/year).
Popular with these industries
Versatile Accounting and Billing Software for Every Sector
FAQs
Is TDS the same as GST?
Which TDS sections does hisabkitab support?
Do I get a report for the quarterly TDS return?
What is TCS and do I need it?
Can AI pick up TDS from supplier invoices?
Can I set TDS once for a supplier?
What does the new Income-tax Act change for TDS?
Does TDS show in the supplier's ledger?
Can I see TDS deducted on payments I received?
Is TDS on purchase of goods covered?
Deduct right, file without the scramble
Set TDS once on your suppliers and let every bill and payment handle it. Try hisabkitab free or book a demo with our CA-led team.
