How do I set up TDS?

To set up Tax Deducted at Source (TDS) in QuickBooks Online, you must first enable the feature in your account settings. Once enabled, you can configure specific customers and suppliers.

Enable the TDS feature

1. Select the Settings gear icon.
2. Select Account and settings.
3. Go to the Advanced tab.
4. In the Chart of Accounts section, select Edit.
5. Check the box for Enable TDS.
6. Select Save, then Done.

Set up TDS for a customer

1. Select the Settings gear icon, then All Lists.
2. Select Customers.
3. If creating a new customer, select New. If editing an existing one, select the customer’s name.
4. In the Tax info section, enter the customer’s PAN.
5. Check the TDS applicable box.
6. Select Save.

Set up TDS for a supplier

1. Select the Settings gear icon, then All Lists.
2. Select Suppliers.
3. If creating a new supplier, select New. If editing an existing one, select the supplier’s name.
4. In the Tax info section, enter the supplier’s PAN.
5. Check the TDS applicable box.
6. Select the Entity type and the Default TDS section.
7. Select Save.

Once configured, the TDS section and amount fields will automatically appear when you create invoices, bills, or expenses for these profiles.