Rate of TDS on 194j

Question

Rate of TDS on 194j

Accepted Answer

TDS rate on 194j is 10% for professional services and 2% for royalty payments.

TDS stands for Tax Deducted at Source.
Section 194j of the Income Tax Act deals with TDS on professional or technical services and royalty payments.
The rate of TDS on professional services is 10% while on royalty payments it is 2%.
If the recipient of the payment is not an individual or a HUF, the TDS rate is 10% on royalty payments as well.
TDS is deducted by the payer at the time of making the payment.
The deducted TDS amount is then deposited with the government.
The recipient can claim credit for the TDS amount while filing their income tax return.

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