Mismatch in TDS Category Naming between Income Tax Portal and ERPNext (FY 2026)

ERPNext India Compliance
1

Hi Team,

I have recently configured the updated TDS categories for FY 2026 in ERPNext (using India Compliance). However, I’ve noticed a mismatch in how TDS sections/descriptions are presented in ERPNext compared to the Income Tax Portal.

Observation:

  • On the Income Tax Portal, TDS sections are described in a more detailed/legal format, for example:

    • “Rent on machinery etc. - specified person - 393(1) [Table: Sl. No. 2(ii).D(a)] - 1008”

  • Whereas in ERPNext, the same appears in a simplified format like:

    • “Rent on Plant / Machinery - Individual” (Section: 1008)

Concern:

  • Although the section code (e.g., 1008) matches, the naming convention and description differ significantly.

  • This creates confusion while mapping and validating TDS categories with statutory references.

Questions:

  1. Is this difference in naming expected behavior in ERPNext / India Compliance?

  2. Is ERPNext internally aligned only based on section codes, and not the full description from the Income Tax Portal?

  3. Are we expected to manually align naming conventions for better clarity, or is there an upcoming update to standardize this?

  4. Could this mismatch create any issues during:

    • TDS return filing

    • Validation with TRACES / Income Tax Portal

Additional Context:

  • TDS category configured with:

    • Section: 1008

    • Entity: Individual

    • Thresholds and rates as per FY 2026 updates

Would appreciate clarification on whether this is a configuration gap from my side or a known difference between ERPNext and statutory portal representations.

Thanks in advance!

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2

@Pawan_kumar_20

Please follow the steps;

  1. create WHT category for each tax section code and name it properly.
  2. Supplier group is where you need to bifurcate type of supplier upon which different WHT section code needs to be applied automatically and configure supplier or supplier group for tax category as well.
  3. in order to run it auto, Tax Rule needs to be defined based on tax category and supplier group.

Hope it helps.

3

Hi @Pawan_kumar_20 and welcome to the community

If you ask on their github Issues · resilient-tech/india-compliance · GitHub you might get an India Compliance TDS specific response

4

Earlier implementation just covered section codes (eg: 1008) - this is what’s going to be used for paying taxes and filing of returns as per Income Tax Act.

Now we’ve added comprehensive description with this PR. Should me merged in some time and be available with upcoming release.

—

PS: It’s sufficient to tag the forum issue as related to India Compliance. No need to duplicate issues at both places - forum and github issues.