TDS Certificate added in Logic ERP

Logic ERP has introduced a new update for TDS Certificates. This feature allows you to apply a lower TDS rate defined in the certificate instead of the standard deduction rate.

For example, if earlier 10% TDS was deducted on a rent payment of ₹10,000, with a valid TDS Certificate the deduction may reduce to 2%. This update ensures compliance while avoiding excess TDS deduction for parties holding a certificate for a particular date.

However, this comes with certain rules:

• The certificate will have a specific validity period.

• A limit amount will be defined (e.g., ₹5 Lakhs).

• Once the defined limit is crossed, the normal rate (10% in this case) will again be applied automatically

Setup TDS Type

• Navigate to: Setup/ Setup Accounts and select" Setup TDS Type" and create the relevant type.

• Simply define the TDS type name then TDS payable Account

• Define the TDS Percentage along with the limit.

• Save the Changes

Define the TDS Certificate

• Navigate to: Setup/ Setup Accounts and select "TDS Certificate".

• Define the relevant fields:

  • TDS Certificate Name

  • Party Name

  • TDS Type

  • Date (Validity Period)

  • Limit (e.g., ₹5 Lakhs)

Note: As you utilize the limit, the available balance will automatically decrease and reflect here, as clearly shown in the image below.

Allocate Accounts to TDS Types

• Allocate the required Account(s) to the respective TDS Type.

• You can also link multiple accounts from this option.

• Mark it as Set as Default.

• Select the TDS Certificate you created and then Save the setup.

Testing in Payment Voucher

• Open a Payment Voucher.

• If the Rent amount is within ₹5 Lakhs, TDS will be charged at 2%.

• If the Rent amount exceeds ₹5 Lakhs, TDS will be applied at 10%.

With this setup, you don’t have to manually calculate or apply lower TDS rates every time — Logic ERP handles it for you.