## Documentation Index

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

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

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# How is TDS calculated in the transactions recorded in Zoho Books?

In Zoho Books, TDS is calculated on the sub-total of a transaction, before applying other taxes.

For example, if you create an invoice for a line item priced at ₹100 and apply 5% TDS, ₹5 will be deducted, and the item’s price reduces to ₹95. When you apply ₹12 as tax on ₹95, the item’s price increases to ₹107, which is the amount charged to the customer.