## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/in/books/help/llms.txt

Use this file to discover all available documentation pages before proceeding.

# TDS Liabilities

TDS (Tax Deducted at Source) is the tax amount withheld by the payer from certain payments made to vendors and paid to the government on the vendor’s behalf. The withheld amount remains a liability for the payer until it is paid to the government and is referred to as a TDS liability.

Zoho Books lets you view all TDS liabilities, associate TDS challans with them, and record payments for the liabilities. You can also configure the expense accounts under which penalty and interest amounts from TDS challans are tracked.

## Enable TDS Liabilities

Before generating the TDS liabilities, you need to enable the feature. Here’s how:

*   Go to **Settings**.
*   Go to _Taxes and Compliance_ and select **Direct Taxes**.
*   Under _Income TDS Settings,_ check the **Enable TDS Liabilities Report** option.
*   Select the month from which you want to generate the TDS liabilities in the **Start Period** field.

![Enable TDS Liabilities](/in/books/help/images/tds/enable-tds-liabilities.png)

*   Click **Save**.

TDS liabilities are enabled from the month you selected.

### Select Accounts to Track Penalties and Interest

When you record a TDS challan, you can enter penalty and interest amounts, if applicable. You can choose the expense accounts to track these amounts. By default, both amounts are tracked under the Other Expenses account.

To configure the accounts:

*   Go to **Settings**.
*   Go to _Taxes and Compliance_ and select **Direct Taxes**.
*   Under _Income TDS Settings_, scroll to **Select Account To Track Penalties and Interest**.
*   Select the **Penalty Account** and **Interest Account** from the respective dropdowns.

![Select Accounts to Track Penalties and Interest](/in/books/help/images/tds/account-for-liabilities.png)

*   Click **Save**.

The selected accounts will be used to track penalty and interest amounts when you [record TDS challans](https://www.zoho.com/in/books/help/tds/tds-challans.html#Record-Challan). You can view the selected accounts below the Interest and Penalty fields on the Record Challan page.

![Accounts Displayed in Challan](/in/books/help/images/tds/account-displayed-in-challan.png)

* * *

## View TDS Liabilities

After enabling the feature, the TDS liabilities will be generated starting from the month you selected. To view the TDS liabilities:

*   Go to **Filing & Compliance** on the left sidebar and select **TDS Liabilities**.
*   The TDS liabilities will be listed starting from the month you selected. Select a liability to view all the transactions from which TDS was deducted for that month.

The liability details include Total TDS, Paid Amount, and Balance.