> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-version-release-notes/september-2025/setup/tds-certificate-added-in-logic-erp.md).
# 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%**.
***
### **Additional Update –**
**Link TDS Types While Creating an Account**\
To link TDS types while creating a new account, follow these steps:
* Navigate to **Setup → Setup Accounts → Setup New Account**.
* Click on the **Other Details** button.
* In the **Other Details** section, locate the option labeled **Link TDS Types**.
**TDS Certificate Column in Report**\
To view the TDS Certificate column in reports, follow these steps:
* Navigate to **Reports → Queries → Financial Analysis** and select **TDS Report**.
* Open the **Pending TDS Report.**
* Here, you will find the option named **TDS Certificate**.
**Note:** If the column is not visible, enable it from **Setup Column Attribute**.
With this setup, you don’t have to manually calculate or apply lower TDS rates every time — Logic ERP handles it for you.
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