How do I reconcile TDS receivable with Form 26AS in Zoho Books?

In Zoho Books India, TDS deducted by your customers is recorded when you record a payment with tax deducted, and it builds up in a TDS receivable account. To reconcile, download Form 26AS or the AIS from the income tax portal, then compare it customer by customer and quarter by quarter with TDS receivable in Zoho Books. Follow up on any gaps with the customer.

When a customer pays you net of TDS, record the payment in Zoho Books and enter the TDS amount in the tax deducted field. Zoho Books posts it to a TDS receivable account instead of leaving it as an unpaid balance on the invoice. If staff mark the invoice as fully paid without entering TDS, or write off the difference, your receivable will not match Form 26AS later.

For the reconciliation, export the TDS receivable account transactions or the relevant report for the quarter and download Form 26AS for the same period. Match by customer TAN or name and amount. Typical mismatches are customers who deducted but did not deposit or file, wrong PAN quoted, timing differences across quarters, and amounts recorded against the wrong customer in Books.

Once matched, decide how to treat old balances that will never appear in 26AS, usually after following up with the customer. Your accountant can advise whether to recover the amount or write it off. At year end, the TDS credit you claim in the return should agree with what remains in the receivable account. Report names can differ by edition, so check the current Zoho Books India help page.

Written by Flowpeak, a Zoho implementation partner. Zoho pricing and features change, so confirm current details on the official Zoho site. Free checklists | Ask us a question