Payments received and TDS

Record every payment your clients make — link it to the invoice so it flips to paid automatically. Capture TDS your client deducted at source, reconcile against Form 26AS at year-end.

Every payment your clients make lands here: record it against an invoice and the invoice flips to paid automatically, capture any TDS the client deducted at source, and hand the client a shareable receipt — then reconcile the year's TDS against Form 26AS in one report.

Record a payment

Tap + → Add payment anywhere, or press P.
Pick the client. If they have unpaid invoices, the Against invoice picker lists them; picking one pre-fills the amount to the invoice total. Leave it on “Ad-hoc payment” for retainers or advances.
Enter the gross amount — even if the client paid you the net after TDS, enter the gross here.
Pick the mode — Cash, UPI, Bank Transfer or Cheque — and optionally tag a project.
If the client deducted tax, turn on Client deducted TDS? (see below).
Save. If the linked invoice is now fully covered, it flips from sent to paid and your outstanding drops by the gross amount.

You can edit a payment later, or delete it with an Undo in the toast. Every payment also gets a shareable receipt you can send the client as proof.

TDS your client deducted

Every Indian consultant runs into this: you raise a ₹1,00,000 invoice, the client pays ₹90,000 and deposits ₹10,000 as TDS against your PAN. Your income is still ₹1,00,000 — the ₹10,000 is a tax pre-payment you offset at year-end.

Turn on Client deducted TDS? on the payment form and pick the section — 194J (professional fees, 10%), 194C (contracts, 2%), 194H (commission, 5%), 194I (rent, 10%), 194A (interest, 10%), 194O (e-commerce, 1%), 194Q (goods, 0.1%), 195 (non-resident, manual) or Other. Finocket suggests the standard rate; the payment row then carries both the gross and the TDS amount. The invoice still marks fully paid.

Reconcile TDS at year-end

Open Reports → TDS summary and pick a financial year. Finocket groups every TDS-tagged payment by client × section and shows total gross, total TDS and net received. Download Form 26AS from the Income Tax e-filing portal and compare: the totals should match what's credited to your PAN. A mismatch means either the client hasn't filed their TDS return yet, or you missed a payment entry.

Access & control

Owners and assistants record, edit and delete payments; an invited accountant sees payments and the TDS summary read-only. Payments are core — always on.

Frequently asked questions

My client deducted 10% TDS under 194J — how do I get it back?

It's not lost: it's pre-paid income tax credited to your PAN. Record the gross amount with the TDS captured in Finocket, verify it appears in your Form 26AS/AIS, and claim it as tax already paid when you file your ITR — it offsets your tax or comes back as a refund.

What is the TDS rate and limit on commission under 194H?

5% on commission or brokerage, once payments to you cross the annual threshold (₹15,000 classically; verify the current limit). Record such receipts in Finocket with section 194H so your year-end summary matches 26AS.

Should I enter the net amount the client actually paid?

No — enter the gross invoice value and capture the TDS separately. Your income and outstanding are based on gross; the TDS is tracked as your credit.

What happens to the invoice when a partial payment comes in?

It stays open until payments cover the full total; then it flips to paid automatically. Each payment shows on the invoice and the client's ledger.

Can I give my client a receipt for their payment?

Yes — every payment has a shareable receipt you can send over WhatsApp or email as acknowledgement.

Clients, projects and invoices

Add clients with GSTIN + state auto-fill. Send invoices — tax invoice, bill of supply, export invoice, receipt or credit note — start from an estimate, or split an invoice into a deposit + milestone schedule.

Estimates, deposits and payment schedules

Send an EST-numbered estimate with a hosted accept link — your client accepts with a typed name recorded with a timestamp — convert it to an invoice in one tap, and collect through a deposit or milestone schedule that chases itself.

The client portal and statements of account

One branded link shows your client their balance, open invoices with pay actions, estimates to accept, payment history and a statement download — plus how to run a per-client statement with running balance and ageing.