Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Hi support66,
The deduction of the Tax Deducted at Source (TDS) depends on the different types of payments. It also consider the nature or residential status of the recipients. Its calculation is based on the threshold defined under the provisions of the Indian Income Tax Act.
Under Section 194 J, any sum paid by way of technical or professional services (exempt up to Rs. 30,000 during the financial year) has a percentage of 10%.
I've added these references that have detailed information on the calculation of TDS:
Don't be hesitant to mention my name if there's anything that I can help. Keep safe!
This answer is not correct. Law has changed and section has now got two rate 10% an deb 2%. System is not calculating correctly.
Good day, @support66.
Thanks for getting back to us. Let me join in this conversation and share more insights about the Section 194J calculation.
QuickBooks Online calculates TDS based on the threshold defined under various provisions of the Indian Income Tax Act.
Yes, you're right. The rate for professional and technical services in Section 194J is 10%. On the other hand, the rate of TDS would be 2% in case the payee is engaged in a call center business operation.
Please know that the system calculates taxes based on the data you've entered into the program.
I'd recommend checking this out with your accountant to find the discrepancy. This way, we can adjust and correct your tax calculation.
For more info, please check out these articles:
Let me know if you need further assistance with this. I'm always around to provide answers and clarifications to your questions. Have a great day ahead and take care.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here