Set up withholding tax component groups for the TDS tax type

This article explains how to set up withholding tax component groups, such as Rent and Contractor, for the Tax Deducted at Source (TDS) tax type.

1. Go to Tax > Setup > Withholding tax > Withholding tax component groups.

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2. In the Tax type field, select TDS to set up withholding tax component groups for the TDS tax type.

3. On the Action Pane, select New to create a line.

4. In the Withholding tax component group field, enter a name for the TDS component group.

5. In the Description field, enter a description.

6. On the General FastTab, in the Status field, select the residential status of the TDS component group. The options are Resident and Non-resident.

7. In the Section code field, enter the section code that is applied to the TDS component group.

8. Close the page.