Applicability of finance Act 2025

Applicability of Finance Act 2025 – TDS Section Mapping

Overview

The TDS Set-Off Payment Master shall support the new TDS sections introduced under the Finance Act 2025.

Functional Requirement

• In Ledger Accounts, users shall be able to map the applicable new TDS section in the TDS Set-Off Payment Master.
• Based on this mapping, users shall be able to generate new section-wise reports in the New Section wise format,
  in TDS challan New Act report applicable under Finance Act 2025.

Existing Data Handling

If users wish to continue using an existing ledger mapped with an old TDS section, the following process shall be followed:

1. Open the TDS Ledger Accounts from the Ledger Accounts form.
2. Update or remap the ledger with the applicable new TDS section.
3. Right-click on the New Section field to create a version-wise mapping for the revised section applicability.

Select New section in old section



Right click and go to version



Select effective date of new section and save it



Once the record is successfully saved, the user will be able to view both old section-wise and new section-wise reports.

To view the new section-wise report, the user shall select the TDS New Challan option and generate the report accordingly.

For TDS payment and TDS Return processing, the user shall be required to select the applicable Act, either the Income-tax Act, 1961 or the Finance Act 2025.

Based on the selected applicability, the system shall process the TDS payment cycle either under the new Act provisions or as per the existing/old Act provisions.

Thank you.