How to: Set Up Nature of Deductions

You must set up Nature of Deductions (NOD) to calculate the Tax Deducted at Source (TDS) for different services. You must specify the NOD for each TDS group. For more information, see How to: Set Up Tax Deducted at Source.

To set up nature of deductions

1. In the Search box, enter TDS Nature of Deductions, and then choose the related link.

2. On the Home tab, choose New.

3. Fill in the fields as described in the following table.

   Field	Description
   Code	The unique code for the TDS nature of deductions.
   Description	The code description for the TDS nature of deductions.
   TDS Group	The TDS group to which the particular nature of deductions belongs.
   Category	The category of the TDS nature of deductions.

4. Choose the OK button.

See Also

Tasks

How to: Set Up Tax Deducted at Source
How to: Set Up Tax Information for Tax Deducted at Source
How to: Set Up Nature of Collection Lines

Concepts

Income Tax Overview