TDS Management

Tax Deducted at Source (TDS) is a statutory requirement for hospitals making payments to vendors, contractors, and professionals. The TDS module...

2026-02-17 · 2 min

Manual area

Finance

Coverage

3 sections

Operator notes

1 implementation note

Overview

Tax Deducted at Source (TDS) is a statutory requirement for hospitals making payments to vendors, contractors, and professionals. The TDS module auto-calculates deductions based on vendor category and payment section, tracks deposits, and generates return data.

TDS Computation

TDS is auto-calculated during vendor payment processing:

Section 194C: Contractors (1%/2%).
Section 194J: Professional/technical services (10%).
Section 194H: Commission/brokerage (5%).
Section 194I: Rent (10% for non-residential).
Section 194Q: Purchase of goods above threshold (0.1%).
PAN-based rates: higher TDS for vendors without PAN.
Threshold limits applied per section per financial year.

Deposit & Filing

Track TDS deposit and return filing:

View pending TDS amounts grouped by section.
Generate challans for deposit with the government.
Mark TDS as deposited with challan number and date.
Prepare Form 26Q data for quarterly TDS return filing.
Reconcile TDS deducted vs. deposited vs. filed.
Form 16A generation for vendor distribution.

Notes

Tip

TDS must be deposited by the 7th of the following month (30th April for March). Set calendar reminders in Bio Ecko to avoid late deposit penalties.

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