TDS filing and Form 130

Verify previous income and rent, record TDS challans, prepare quarterly returns and release Form 130.

Payroll › Operations covers the employer’s side of income tax: what employees submit, the challans you deposit, the quarterly return and the year-end certificate.

Previous income and rent

Employees who joined mid-year submit their earlier employer’s salary and TDS under Me › Tax › Previous income. Verifiers see them under Approvals › Tax declarations › Previous income and approve or reject with a reason. Approving recomputes TDS on the year’s open payroll runs; a locked run must be unlocked first.

Rent for the HRA exemption is entered on the declaration and verified the same way. When rent gives an HRA exemption, an exemption set on the HRA component in Settings › Components is not applied for that person as well; the tax computation says so on its own line.

TDS challans

On Payroll › Operations › TDS returns, pick the legal entity and the year, then Manage challans on a month. The page shows tax deducted in the released payroll, tax deposited and the balance. Add each challan with its BSR code, serial, date and amounts; the employees with TDS that month are mapped automatically. Interest and fee are recorded but do not settle tax deducted. A filed quarter’s challans are read-only.

Quarterly returns

Payroll › Operations › TDS returns lists the four quarters of the year for an entity: Not ready, Ready, Generated or Filed. A quarter with a month whose challan is missing is never Ready. Generate gives a working sheet (.xlsx) to prepare the return; it is marked not a filing file. Once you have filed the return yourself, Mark filed with the token number.

The entity’s TAN and the certificate signatory are set on the entity’s Tax & registrations tab in Setup › Organisation › Entities, and shown in Payroll › Settings › Filing details. Generate refuses until the TAN is set.

Form 130

After the year ends, download the Part A ZIP for the entity from TRACES and upload it under Payroll › Operations › Form 130 with its password. The password is used once to open the file and is never stored. Each file is matched to an employee by the PAN in its file name; files that match nobody are listed with the reason and are never guessed. Part B is generated beside each matched Part A.

Release certificates to employees when you are ready. Each person sees only their own, under Me › Tax › Forms.