As per Income tax TDS is Deductable only when the TDS amount exceeds the specified Income Tax Exemption Limit.
When the TDS amount exceeds income tax exemption Limit, TDS will be applicable on the entire amount right from the first transaction and such past transactions will have to be shown in the e-TDS statements. In this scenario it is always suggested that a realistic estimation of total amount, to be made right in the beginning and deductor should deduct TDS without considering the income tax exemption limit.
To configure party ledger to ignore TDS exemption press Alt+I or select I: Configure Income Tax Exemption and press Enter to view Income Tax Exemption Setup sub-form
Example: For Pheonix Agencies realistic estimation has been made. The total payments exceeds the TDS exemption limit and hence want to configure the party ledger to deduct TDS from first transaction.
In Income Tax Exemption Setup screen
Select Pheonix Agencies and tab down to Ignore Income Tax Exemption field and set the option to Yes and press enter to view Ignore Income Tax Exemption screen
In Ignore Income Tax Exemption screen
In Nature of Payment field
All Items to Ignore income tax exemption on all the nature of Payments
Any specific Nature of Payment (s) e.g. Payment to Contractors (Advertisement Contractors) to ignore income tax exemption only for the selected nature of payment (s).
Press enter to save.
Note: You can also configure party ledger to ignore income tax exemption from Gateway of Tally > Accounts Info. > Ledgers > Create/Alter.