diff --git a/erpnext/accounts/doctype/account/chart_of_accounts/verified/in_standard_chart_of_accounts.json b/erpnext/accounts/doctype/account/chart_of_accounts/verified/in_standard_chart_of_accounts.json
index bc7f9659564..f2c767f7cd5 100644
--- a/erpnext/accounts/doctype/account/chart_of_accounts/verified/in_standard_chart_of_accounts.json
+++ b/erpnext/accounts/doctype/account/chart_of_accounts/verified/in_standard_chart_of_accounts.json
@@ -139,6 +139,9 @@
                     "Creditors": {
                         "account_type": "Payable"
                     },
+                    "TDS": {
+                        "account_type": "Payable"
+                    },
                     "Payroll Payable": {}
                 },
                 "Stock Liabilities": {
diff --git a/erpnext/hr/doctype/employee/employee.json b/erpnext/hr/doctype/employee/employee.json
index 3527197edc1..cc3fb7ff20b 100644
--- a/erpnext/hr/doctype/employee/employee.json
+++ b/erpnext/hr/doctype/employee/employee.json
@@ -2766,7 +2766,7 @@
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2018-05-10 07:52:24.326361", 
+ "modified": "2018-05-11 12:48:46.435484", 
  "modified_by": "Administrator", 
  "module": "HR", 
  "name": "Employee", 
diff --git a/erpnext/regional/india/setup.py b/erpnext/regional/india/setup.py
index 0073d3311c2..f035249aa43 100644
--- a/erpnext/regional/india/setup.py
+++ b/erpnext/regional/india/setup.py
@@ -16,7 +16,7 @@ def setup(company=None, patch=True):
 	add_print_formats()
 	if not patch:
 		update_address_template()
-		make_fixtures()
+		make_fixtures(company)
 
 def update_address_template():
 	with open(os.path.join(os.path.dirname(__file__), 'address_template.html'), 'r') as f:
@@ -189,15 +189,13 @@ def make_custom_fields():
 
 	create_custom_fields(custom_fields, ignore_validate = frappe.flags.in_patch)
 
-def make_fixtures():
-	docs = [
-		{'doctype': 'Salary Component', 'salary_component': 'Professional Tax', 'description': 'Professional Tax', 'type': 'Deduction'},
-		{'doctype': 'Salary Component', 'salary_component': 'Provident Fund', 'description': 'Provident fund', 'type': 'Deduction'},
-		{'doctype': 'Salary Component', 'salary_component': 'House Rent Allowance', 'description': 'House Rent Allowance', 'type': 'Earning'},
-		{'doctype': 'Salary Component', 'salary_component': 'Basic', 'description': 'Basic', 'type': 'Earning'},
-		{'doctype': 'Salary Component', 'salary_component': 'Arrear', 'description': 'Arrear', 'type': 'Earning'},
-		{'doctype': 'Salary Component', 'salary_component': 'Leave Encashment', 'description': 'Leave Encashment', 'type': 'Earning'}
-	]
+def make_fixtures(company=None):
+	docs = []
+	company = company.name if company else frappe.db.get_value("Global Defaults", None, "default_company")
+
+	set_salary_components(docs)
+	set_tds_account(docs, company)
+	set_tax_withholding_category(docs, company)
 
 	for d in docs:
 		try:
@@ -206,3 +204,43 @@ def make_fixtures():
 			doc.insert()
 		except frappe.NameError:
 			pass
+
+def set_salary_components(docs):
+	docs.extend([
+		{'doctype': 'Salary Component', 'salary_component': 'Professional Tax', 'description': 'Professional Tax', 'type': 'Deduction'},
+		{'doctype': 'Salary Component', 'salary_component': 'Provident Fund', 'description': 'Provident fund', 'type': 'Deduction'},
+		{'doctype': 'Salary Component', 'salary_component': 'House Rent Allowance', 'description': 'House Rent Allowance', 'type': 'Earning'},
+		{'doctype': 'Salary Component', 'salary_component': 'Basic', 'description': 'Basic', 'type': 'Earning'},
+		{'doctype': 'Salary Component', 'salary_component': 'Arrear', 'description': 'Arrear', 'type': 'Earning'},
+		{'doctype': 'Salary Component', 'salary_component': 'Leave Encashment', 'description': 'Leave Encashment', 'type': 'Earning'}
+	])
+
+def set_tax_withholding_category(docs, company):
+	accounts = []
+	tds_account = frappe.db.get_value("Account", filter={"account_type": "Payable",
+		"account_name": "TDS", "company": company})
+
+	if company and tds_account:
+		accounts = [
+				{
+					'company': company,
+					'account': tds_account
+				}
+			]
+
+	docs.extend([
+		{
+			'doctype': 'Tax Withholding Category', '__newname': 'TDS',
+			'percent_of_tax_withheld': 10,'threshold': 150000, 'book_on_invoice': 1,
+			'book_on_advance': 0, "withhold_cumulative_tax_amount": 0,
+			'accounts': accounts
+		}
+	])
+
+def set_tds_account(docs, company):
+	docs.extend([
+		{
+			'doctype': 'Account', 'account_name': 'TDS', 'account_type': 'Payable',
+			'parent_account': 'Accounts Payable', 'company': company
+		}
+	])
\ No newline at end of file