You can manage TDS (Tax Deducted at Source) settings for an employee directly inside the Employee Module, without leaving the HR workflow. The TDS section sits inside the same Edit aside that holds the rest of the employee record, so you can switch the toggle on, capture the Annual TDS amount per financial year, and save — all in one place.
Daai Business Suite does not calculate the slab-wise tax for you. You compute the annual TDS figure externally (or with your tax consultant) and enter the final number per financial year on the employee record. The system then spreads that annual figure month-by-month when salary is generated, and posts a unified TDS Challan on the Finance side.
How to Enable TDS for an Employee
📍 Screen: HRM → Employee → open the employee row → click Edit in the aside header. Scroll down to the Tax Deducted at Source (TDS) field, then to the TDS Details section that appears below it.
- Navigate to HRM → Employee in the main menu.
- Select an employee record and click the Edit button in the aside header.
- In the editable form, locate the Tax Deducted at Source (TDS) field (within the Employment / HR section of the form).
- Set Tax Deducted at Source (TDS) to Yes. The TDS Details section becomes visible right below.
- In the TDS Details table, click + Add TDS Details, fill in the Annual TDS Amount and select the TDS Financial Year, then save the row.
- Click Update at the top-right of the aside to commit the changes to the employee record.
⚠️ Note: The same TDS section is also reachable from User Management → Users → Edit for accounts where Is Employee is Yes. Either entry point updates the same employee record — there is no longer a separate “Users TDS” vs “Employee TDS” copy of the data, so changes sync across modules automatically.
The TDS Details Table (Multiple Rows per Employee)
When TDS is set to Yes, the TDS Details table appears. This is now a multi-row table — one row per financial year — so the same employee record holds the current year’s TDS, previous years’ TDS, and prior-employer figures side by side without overwriting older entries.
| Column | Description |
|---|---|
| # | Row number — the table can hold multiple rows, one per financial year. |
| Annual TDS Amount | The total TDS to be deducted from this employee for the selected financial year. Numeric, in ₹. Mandatory when TDS is enabled. |
| TDS Financial Year | The financial year this row applies to (for example 2025-2026). Pick from the dropdown. Each financial year can appear only once per employee — already-used years are disabled in the dropdown. |
| Action | Pencil icon to edit the row, trash icon to remove it. The trash icon is hidden in View mode. |
Add Another Financial Year
- Click + Add TDS Details below the table to insert a new empty row.
- Fill the Annual TDS Amount and pick the TDS Financial Year.
- Click Update at the top-right of the aside to save the employee record.
Edit an Existing Row
- Click the pencil icon next to the row to make the cells editable.
- Update the amount or change the financial year (only years not already used on this employee are selectable).
- Click Update at the top-right of the aside.
Remove a Row
- Click the delete icon next to the row to remove it.
- Click Update to commit the removal.
💡 Why multiple TDS rows per employee? Earlier the employee record stored a single TDS amount, which had to be overwritten each financial year — losing the previous figure. The current model keeps every annual TDS entry on the record, so:
- Last year’s TDS stays auditable even after you enter the new year’s figure.
- Prior-employer TDS for the current FY can sit alongside the current employer’s planned TDS for the same FY (or be added into the same FY’s annual figure, depending on how your finance team chooses to capture it).
- Mid-year revisions don’t destroy history — you edit the current FY’s row and the system re-balances the remaining months.
Validation Rules
- Tax Deducted at Source (TDS) is a mandatory selection — Yes or No must be chosen.
- When TDS is set to Yes, the TDS Details table is mandatory — the form will not save with TDS enabled and zero rows. Unfilled rows are highlighted with the standard required-field indicator.
- Annual TDS Amount must be a non-negative number.
- TDS Financial Year must be selected from the dropdown; the same FY cannot be added twice on the same employee.
- The form’s submit button has an in-flight guard, so a slow click cannot create duplicate save requests.
⚠️ If the employee has TDS enabled but no row for the salary’s financial year, salary generation for that month will fail and the system will list the affected employee. Either disable TDS for that employee or add a TDS Details row for the relevant financial year before regenerating salary.
🧾 TDS Challan Auto-Creation on Salary Generate
Every salary cycle that includes TDS-enabled employees automatically creates or updates a TDS Challan on the Finance side, grouped by financial year and quarter. Salary-side TDS and vendor / expense TDS now share one unified challan flow — the same create-challan service, the same UI, the same status field.
📍 Screen: Finance → TDS Challan — every TDS challan, salary or vendor, surfaces in this single grid.
The Source Column
The TDS Challan grids carry a unified Source column so each row tells you exactly where the deduction came from:
- Salary · <employee name> — for monthly salary TDS deductions originating from this employee record.
- Vendor · <expense number> — for vendor / expense TDS (recorded outside the salary flow, on the Expense module).
Challan Status Values
| Status | Meaning |
|---|---|
| Unpaid | Default after the challan is created. No payment recorded against it yet. |
| Part Pay | Some — but not all — of the challan amount has been paid. |
| Paid | Fully paid and reconciled. |
| Advanced | The challan has already been filed / paid but reconciliation against the source record is still pending. Useful when a paid challan’s source salary or expense is later cancelled — the paid amount is reusable. |
| Cancelled | Reversed — for example, when the source salary is cancelled or the source expense’s Is TDS flag is unticked. |
Reminder: Salary Setup Drives the Monthly Split
The salary record you associate with the employee — whether captured in Users or Employee Module — drives how the salary (and the TDS line on it) is calculated month after month.
- Always ensure the employee has an accurate, up-to-date Salary Structure that includes:
- CTC, Basic %, HRA %, Conveyance, Variable Pay %, Total CTC
- Employee and Employer PF, ESIC rates
- Effective Month and Year
- If you leave salary data outdated, the system falls back to the last valid salary record during payroll generation.
Need a step-by-step walkthrough of the salary fields? Read more here: 🔗 How to Add Salary Data for Employees
✅ Tips
- Daai Business Suite does not calculate slabs, regimes, or 80C / 80D — only the final annual TDS amount you enter is used.
- Each financial year is a separate row; older rows are kept, not overwritten, so audit history stays intact.
- To capture prior-employer TDS for the current FY, either factor it into the current FY’s annual figure before entering, or use a dedicated row depending on your finance team’s convention.
- All TDS-related changes (toggle on / off, row add / edit / remove, amount change) are captured in the employee’s changelog at form submit, so the audit trail is intact.
- Salary-side and vendor-side TDS land in the same challan grid under Finance → TDS Challan, distinguished by the Source column.
⚠️ Important
- Daai Business Suite is a compliance support tool, not a filing tool. The actual TDS challan filing must still be done on the government TDS portal.
- TDS Challans cannot be deleted directly. To reverse a salary-side challan, cancel the underlying salary; for a vendor-side challan, untick Is TDS on the source expense.
- Disabling TDS on the employee (toggle back to No) hides the TDS Details table on the form, but historic salary-side challans already posted are not removed — they remain in Finance → TDS Challan for audit.
For a thorough breakdown of how the annual TDS figure becomes the monthly TDS line on the payslip, including the auto re-balancing example, head to the dedicated guide: 🔗 How TDS is Calculated