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/Alt+Shift+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.
Related: Clients & invoices, Reports & GST filings.