Tax Withholding Category is Tax Deducted at Source. According to this, a person responsible for making payments is required to deduct tax at source at prescribed rates. Instead of receiving tax on your income from you at a later date, the govt wants the payers to deduct tax beforehand and deposit it with the government.

To Access Tax Withholding Category:

Login to ERP > Desktop > Accounting > Tax Withholding Category

How to create Tax Withholding Category

1. Under Taxe Masters section Select Tax Withholding Category
2. Click Add Tax Withholding Category
3. Enter Withhold name
4. On the Taxe Withholding Rates Table Click Add Row then set from date and to date, set tax withholding rate, and Set single transaction threshold and Cumulative Transaction Threshold.
5. Under Account details Table Click Add Row then select company and withhold account
6. Click Save