---
title: "TDS Setup for India"
space: "ERPNext"
url: "https://docs.frappe.io/erpnext/tds-setup-india"
updated: "2026-02-26"
---

To setup ***TDS*** in ERPNext follow below steps:

  
  


* First you have to define Tax withholding categories, by default 28 categories are already pre-defined as per Indian statutory compliances. But if you want to add new category then you can create the same by clicking on "New"(button at right top corner)

![](/files/Oq1mP48.png)  


* As per category you have to define Tax withholding rate along with "Single Transaction Threshold" & "Cumulative Transaction Threshold" for Financial/Fiscal year.

![](/files/MELGDIu.png)  


* In same screen you will find another section of "Account Detail" to set company-wise TDS Payable account.

![](/files/IIB6N8R.png)  


* Once you are done with Tax withholding setup go to Supplier master and assign Tax withholding category.

![](/files/aThoNuR.png)  


* Now when you create a Purchase invoice against that supplier make sure "Apply Tax withholding Amount" is checked then only system will auto fetch TDS Payable amount in "Taxes & Charges" table based on Threshold you have defined.

![](/files/zyZdwsr.png)  


![](/files/XUJEgQ7.png)  


Standard report is also available to check monthly payable, just search for "TDS payable monthly" report for the same.