TDS Accounting Guide for Post Offices

🔄 TDS Accounting Transition to APT (IT 2.0)

New procedure for accounting TDS (Tax Deducted at Source) in post offices using the APT (IT 2.0) system.

References SB order No. 12/2025, which outlines changes for accounting POSB (Post Office Savings Bank) transactions.

📊 New Finacle Reports for Reconciliation

• Six new reports have been introduced in Finacle to ensure the CBS (Core Banking Solution) data matches the Daily Transaction Report (DTR) in APT.
• For Today's Data: Generate after executing the CSMDAY menu.
• GL IT2.0 Transaction Report – Consolidated (Today)
• GL IT2.0 Transaction Report – Detailed (Today)
• GL IT2.0 Report GL Wise – Consolidated (Today)
• For Previous Day's Data: Use reports from the Finacle MIS server.

✅ Proper Accounting Procedure

• Generate the "GL IT2.0 Transaction Report - Consolidated (Today)" from Finacle.
• Ensure the figures from this report are correctly fetched and reflected in the DTR.
• Crucially, do NOT post any Finacle transactions manually in APT. The integration is automated.

⚖️ TDS Scenarios: Right vs. Wrong

• Scenario 1 (Correct): Proper accounting of TDS under Section 194A (on interest payments) using Finacle GL 36014 and Account Code 9421000400.
• Scenario 2 (Incorrect): Wrong accounting of TDS under Section 194N (on cash withdrawals), showing what to avoid.

🏢 Centralized Processing (CPRC)

• Several POSB transactions are now centrally accounted for at CPRC, Chennai, including:
• Internet/Mobile Banking
• IPPB transactions
• ATM, NEFT, RTGS transactions
• Cheque Clearing & NACH
• TDS deductions under Section 194N and 194A
• Annual interest credits and maintenance charges

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