Sanchit A & Co · Chartered Accountants

TDS Reconciliation

Upload your expense, purchase and TDS ledgers. The tool reads each entry's narration to find the nature of payment, applies the section-wise limits of the Income-tax Act, and compares what should have been deducted with what the TDS ledgers show. The result downloads as a detailed Excel workbook.

How to prepare the ledgers (read this first)

Export from Tally

Open Display More Reports → Account Books → Ledger and select the ledger.
Set the period to the full year (or the quarter you are checking).
Open Configure (F12) and switch on Narrations, Voucher Type and Voucher Number. Keep the condensed view so Particulars shows the party.
Export (Alt+E) to Excel. One ledger per file, or one ledger per sheet in a workbook.
Do the same for every TDS ledger (TDS on Contractor, TDS on Professional, and so on).

The narration must say what was paid for

"Being professional fees for GST audit FY 2025-26"
"Being crane hire for shifting machinery"
"Being godown rent for June 2026"
"Being amount paid" or "As per bill" (nature cannot be read)
Entries with no usable narration fall back to the ledger name. You can also fix a section for a whole ledger in step 2.

Other formats work too

Any sheet with these headings is read. A PAN column is optional and decides the 1% / 2% contractor rate.

Keep the voucher number in both the expense and the TDS ledger. That is how each deduction is tied to its bill.

STEP 1Upload ledgers

Expense & purchase ledgers

Professional fees, rent, contract and labour, freight, commission, interest, repairs, purchases and any other expense ledgers.

Choose files

TDS ledgers

Every TDS payable ledger. Name them by section (for example "TDS on Contractor 194C") or set the section in step 2.

Choose files

Client name Year Work out interest up to

Client's turnover exceeded ₹10 crore last year, so TDS on purchase of goods (194Q) applies Apply the higher no-PAN rate (20%) where the ledger has a PAN column but the PAN is blank

STEP 2Check how each ledger is read

Leave a ledger on "Read narration" when it mixes different kinds of payments. Fix a section when the whole ledger is one nature. The narration column shows how many entries carry a narration.

Expense / purchase ledger	Entries	Amount	Narration	Section

TDS ledger	Deducted	Deposited	Not linked	Section

STEP 3Reconciliation

Section	Nature	Parties	Booked	Liable to TDS	Deductible	Deducted	Short	Excess

Needs review

Party	Section	Booked	Deductible	Deducted	Rate deducted	Issue

What the Excel workbook contains

Summary
TDS Ledgers
Party-wise Recon
Transaction Detail
TDS Entries
Exceptions
Ledger Mapping
Rules & Notes

Every expense entry is listed with its narration, the section read, the keyword that decided it, the TDS ledger name and amount linked to it, and the rate actually deducted.

Thresholds and rates follow the Income-tax Act, 2025 for Tax Year 2026-27 (unchanged from FY 2025-26), with both old and new section references. Salary, lower-deduction certificates, transporter declarations and non-resident payments are outside this check. Interest is indicative. Files are read in your browser and are not uploaded anywhere.