How do I record a member payment where TDS has been deducted?

Sometimes, members will be deducting TDS on the Demand Note / Invoice raised by the society before paying the same. For example, society has raised an invoice for Rs. 40,000/- and the member actually deducted 10% TDS (Rs. 4,000) and paid only Rs. 36,000/-.

Here is the process to be followed by the accounts office to record the same:

1. Go to Income->Enter and Verify Payment – select the flat and go the next screen.

2. Record Rs. 36,000 payment – you can reduce Rs. 4,000 from any of the charges that the member is trying to pay and issue the receipt. Click on Cash/Cheque/NEFT/Overseas Transfer based on how the member has made the payment, fill in the details. Select the Cash/Bank account from “Deposted In” list and confirm to issue the receipt.

At this point in time, the flat has Rs. 4,000/- as dues and a receipt has been issued for Rs. 36,000/- to the member.

Now, please go to Income->Enter and Verify Payment and select the flat again and go to the next screen.

Select “Adjustment” (last radio button) in the Payment Details section.

Here you can see the “Debit to Account” list. Please select the “TDS  Receivable” account (if such account is not present, please create the same under Accounting->Chart of Accounts as an Asset Account) and confirm.

This ensures that you have recorded TDS deduction by the member in your accounting books properly.

You can look up all TDS Deductions by going to Income->View Payments and searching for “Adjustments”. You can delete the same and re-enter if there were any mistakes.

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