TDS Deduction for Technical Services

This policy or notice applies to all customers of PeerXP, without exception.

The payments made to PeerXP for the Technical services provided by us may be subject to a TDS deduction of 2% only, in accordance with the Income Tax rules under Section 194J (Technical Services). Please refer to the notice, as per Govt. of India guidelines.

The 2% TDS rate has been applicable since the Budget Finance Bill 2020, with an amendment to Section 194J.

Reference: https://www.incometaxindia.gov.in/budgets and bills/2020/finance_bill.pdf

Further, you may refer to the explanation provided about this notification on Cleartax's website.

Section 194J - TDS on Fees for Professional or Technical Services

The deduction of tax at source (TDS) has been very helpful in the collection of taxes in the country by targeting the source of income itself. TDS eases the taxpayer's burden of paying tax when it is time to file their income tax returns.

cleartax.in

🕒 Last updated: @June 24, 2021

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