Creating Ledger Account of Party/Deductee

Go to Ledger Creation(Gateway of Tally -> Accounts Info. -> Ledger -> Create). At ledger creation or alteration screen the party/deductee from whom TDS is to be deducted. The following information is to be provided :
Is TDS applicable : Set 'yes' this option.

Is Lower/No Deduction Applicable : If lower deduction is not applicable then set this option to 'no'.

Ignore surcharge : In certain cases, when the limit for TDS is reached, surcharge on TDS is levied. If this option is set as 'yes', surcharge will be deducted without any consideration to the exemption limit. If this option is set as 'no', surcharge will be calculated, only when the exemption limit is crossed.