TDS U/s 194C is Not Calculated even though the Threshold Limit is Overlooked.

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Posted on by Jainam M. Kothari

15,639 Super User 2025 Season 2

Hello Everyone,

Has anyone encountered an issue where TDS is not being calculated on purchase transactions due to Microsoft updates on use cases? I have enabled the "Threshold Overlook" option under the TDS Allowed section in the Vendor Card, yet the TDS amount is not being applied.

For example:

Purchase Transaction Value: ₹10,000
TDS Applicable: Yes (Configured in Vendor Card)
TDS Nature of Deduction: Assigned in Purchase Lines
Threshold Overlook: Enabled
Issue: TDS is not being calculated.

However, when the Purchase Transaction Value exceeds the Per Contract Value (e.g., ₹35,000 when Per Contract Value is ₹30,000), TDS is successfully applied.

Could someone help me troubleshoot and resolve this issue?

Categories:

Dynamics 365 Business Central

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Raghav3022 214 on at

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I encountered the same issue recently. TDS threshold overlook is only considering the TDS threshold limit and not the per contract value. Please mention if you find a solution

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Gerardo Rentería Ga... 25,384 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Threshold Overlook field impact in NAV & MSDYN365BC [NOD-TDS]

How to use Same TDS Section for Multiple Use Cases in D365BC

Best Regards
Gerardo

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Suggested answer

Khushbu Rajvi. 20,838 Super User 2025 Season 2 on at

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Hope this helps as well: https://learn.microsoft.com/en-us/dynamics365/business-central/localfunctionality/india/tds-threshold

https://learn.microsoft.com/en-us/dynamics365/finance/localizations/india/apac-ind-tds-threshold-limit-and-exception-threshold-limit

https://tax2win.in/guide/section-194c-under-income-tax-act

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Jainam M. Kothari 15,639 Super User 2025 Season 2 on at

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Hello Everyone,

Yes Exactly this is happens after the Microsoft Update as on 17-01-2025.

So you can create New TDS Section Code which is the Copy of Existing TDS Section. Mention Only the Threshold Limit and Don't Mention the "Per Contract Value" in TDS Setups.

And then make a transactions with New TDS Section with TDS Overlook.

Then TDS will be Applied.

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