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Tax Withholding Entry

Lakshit Jain edited this page 2025-12-24 18:28:38 +05:30

Table of Contents

• What Changed in v16
• Old Structure
• New Structure
• 1. Migrates Purchase Invoice TDS
• 2. Migrates Sales Invoice TCS
• 3. Migrates Payment Entry TDS
• 4. Migrates Journal Entry TDS
• 5. Copies Party Category to Items
• Removed Features
• New Features in v16

Guide for upgrading Tax Withholding from earlier versions to v16.
https://github.com/frappe/erpnext/pull/51099

What Changed in v16

The TDS/TCS system was refactored to use a new Tax Withholding Entry child table for detailed tracking.

Old Structure

DocType	TDS Data Location
Purchase Invoice	taxes table, tax_withheld_vouchers, advance_tax
Sales Invoice	taxes table
Payment Entry	advance_taxes_and_charges with allocated_amount
Journal Entry	accounts table with is_tax_withholding_account

New Structure

DocType	TDS Data Location
All	tax_withholding_entries child table with detailed tracking

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When upgrading to v16, the system automatically:

1. Migrates Purchase Invoice TDS

• Entries from taxes table with TDS accounts
• Historical tax_withheld_vouchers entries
• advance_tax allocations from Payment Entries

2. Migrates Sales Invoice TCS

• Entries from taxes table with TCS accounts

3. Migrates Payment Entry TDS

• Advance tax entries (allocated and unallocated)
• Creates "Over Withheld" entries for unallocated advances
• Creates "Duplicate" entries for cross-document references

4. Migrates Journal Entry TDS

• Debit/Credit Note TDS entries

5. Copies Party Category to Items

• tax_withholding_category from invoice level copied to item rows
• Enables item-level TDS going forward

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Removed Features

Feature	Status
Purchase Order TDS	Removed
Purchase Receipt TDS	Removed
Old advance_tax table	Replaced by Tax Withholding Entry
Old tax_withheld_vouchers table	Replaced by Tax Withholding Entry

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New Features in v16

Feature	Description
Tax Withholding Entry	Unified child table for all document types
Item-Level TDS	Different categories per item in same invoice
Tax Withholding Groups	Different rates for Individuals vs Companies
Improved LDC Handling	Automatic split between LDC and normal rates
Cross Fiscal Year	Over Withheld entries carry forward
Tax on Excess Amount	Tax only on amount exceeding threshold

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