How do I enable TDS to apply for invoice / bill transactions?

TDS stands for Tax Deducted at Source, where a certain percentage of the payment is deducted at the time of the transaction and remitted to the government by the payer.

In Zoho Books, you can enable TDS for your customers and vendors by:

• Go to Settings at the top right corner of the page.
• Select Taxes under Taxes & Compliance.
• In the Taxes pane, select Tax Settings.
• Check the Enable TDS box.
• Select Customers, Vendors, or Customers and Vendors from the Support TDS For dropdown to enable TDS.
• Click Save.

You can create TDS rates for your customers and vendors in Zoho Books.