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support66
Level 1
posted
‎February 05, 2021 11:06 PM
last updated ‎February 05, 2021 11:06 PM

Section 194J is calculating incorrect TDS. It should be 7.5%, however, it is calculating at 1%. Please advise if there is some config missing at our end.

 
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3 Comments 3
Adrian_A
Moderator
Moderator
‎February 06, 2021 01:59 AM

Section 194J is calculating incorrect TDS. It should be 7.5%, however, it is calculating at 1%. Please advise if there is some config missing at our end.

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!

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support66
Level 1
‎February 03, 2022 07:36 PM

Section 194J is calculating incorrect TDS. It should be 7.5%, however, it is calculating at 1%. Please advise if there is some config missing at our end.

This answer is not correct. Law has changed and section has now got two rate 10% an deb 2%. System is not calculating correctly.

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ReymondO
QuickBooks Team
QuickBooks Team
‎February 03, 2022 11:12 PM

Section 194J is calculating incorrect TDS. It should be 7.5%, however, it is calculating at 1%. Please advise if there is some config missing at our end.

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.

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