## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/in/books/kb/llms.txt

Use this file to discover all available documentation pages before proceeding.

[Back](./)

# How do I handle changes in TDS rates in my Zoho Books organization when the Income Tax Department updates them?

During the annual Union Budget meeting, the government announces changes to the TDS rates for various categories. For example, the TDS rate for payments under sections 194DA, 194H, 194-IB, and 194M was reduced from 5% to 2% in 2024

If the Income Tax Department updates the TDS rates, you can set a start date and an end date for the changed TDS taxes. By doing so, the TDS rate will expire after the specified end date, allowing you to create a new TDS rate with start and end dates that reflect the new rates specified by the government.

With the _Effective Date_ field, users can specify start and end dates when creating TDS, TDS Surcharge, TDS CESS, and Group TDS. The TDS tax rate with an effective date will apply only to transactions within the specified date range.

**Note:**TDS rates with effective dates cannot be associated with Group TDS that does not have an effective date. For Group TDS with an effective date, the associated TDS rates must not start after or end before the Group TDS’s effective date.

To create a TDS rate with an effective date:

*   Go to _Sales_ on the left sidebar and select **Invoices**.
*   Click **\+ New** to create a new invoice, or select the invoice to which you want to apply TDS rate and click **Edit**.
*   Enter all the necessary details and scroll down to the _Total_ section.
*   Choose _TDS_ and click **Manage TDS** from the _Select a Tax_ dropdown.
*   Click **\+ New TDS Tax** in the popup.
*   Enter **Tax Name**, **Rate**, and select the **Section**.
*   Check the **This is a Higher TDS Rate** option, if you’re adding a higher TDS rate and select a reason for it in the **Reason for Higher** **TDS** **Rate dropdown**.
*   Select the **Start Date** and **End Date** applicable for the TDS rate under _Applicable Period_.

**Note:**You can specify only the End Date if you want to set an expiration period for a TDS rate.

*   Click **Save**.

![Manage TCS](/in/books/kb/images/taxes/tds-applicable-rate.png)

Once the applicable period ends, the status of the TDS rate will be marked as _Expired._

**Note:**Similarly, you can create and apply TDS rates with effective date in other applicable modules.

## Edit the Effective Date of a TDS Rate

**Note:** If you edit any fields other than the Start Date and End Date, a new TDS rate will be created.

To edit the effective date of a TDS rate:

*   Go to _Sales_ on the left sidebar, and select **Invoices**.
*   Select the invoice that you want to edit and click **Edit** on the top bar.
*   Scroll down to the total section and click **Manage TDS** from the dropdown next to TDS.
*   Hover over the required TDS rate and click the **Edit** icon.
*   Change the _Start Date_ or the _End Date_ according to your preference.
*   Click **Save**.

The TDS rate will be saved with the start date and end date you’ve selected.

**Note:** The start and end dates of a TDS rate must fall within the applicable period.