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OFI : Incorrect Tax Deducted at Source (TDS) Calculated when Threshold Limit Amount is Breached by Multi-line Invoice on which TDS Applied only on Single Line (Doc ID 2970551.1)

Last updated on AUGUST 28, 2023

Applies to:

Oracle Financials for India - Version 12.2.1 and later
Information in this document applies to any platform.


Incorrect TDS is calculated when the threshold limit amount is breached for cases where invoices have more than one line (say 2 lines) and TDS is applied only on single line.

The issue can be reproduced with the following steps:-

1. Navigate to Oracle Payables > Invoice > Invoices.

2. Enter invoice details having two lines with such amounts so that the withhold threshold limit amount gets breached.

For a better understanding, Let's consider below mentioned example.

N) Oracle Financials for India > Withholding Tax Setup > Define Withholding Thresholds.

Withhold Threshold is defined as below:-

Slab 1
Threshold type==>Cumulative
From amount==>0
To amount==>5000000

Slab 2
Threshold type==>Cumulative
From amount==>5000000
To amount==>(null)

Enter Accounts Payables (AP) invoice with two lines as mentioned below:-

Line 1 amount - 6000000 (60 lakh)
Line 2 amount - 1000000 (10 lakh)

Note: The mentioned details is just an example for understanding purpose, One can take any line amount to breach the withhold threshold limit.

3. Open the TDS Tax Detail form and observe that the transition TDS tax category defaulted on both lines which is correct, Remove the TDS section and tax category from one line, click on the override checkbox for both lines, and save.

4. Validate the invoice.

5. Observe that the TDS invoice generated with wrong amount.


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