How do I reverse TDS in Zoho Books if my customer hasn’t reported it to the Government?

If your customer hasn’t reported TDS to the Government, you can collect the unreported TDS from them and report it to the Government yourself. To record this in Zoho Books, you can create a Debit Note. Here’s how:

Go to Sales on the left sidebar and select Invoices.
Click the + New dropdown in the top right corner and select New Debit Note.
In the New Debit Note page, fill in the required details.
In the Item Table, enter TDS Receivable Reversal as the Description, enter the TDS rate, and select Out of Scope in the Tax column.
Click the More icon next to the line item, and select Show Additional Information from the dropdown.
In the Account field, select TDS Receivable or the account in which you track TDS.
Click Save and Send or Save as Draft and send it later.

The debit note will be created. You can record payment for the debit note once your customer makes the payment.

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