TDS Deduction on Payouts for Indian Resident
10% TDS (Tax Deducted at Source) will be deducted on payouts made to Indian resident recipients under Section 194J of the Income Tax Act.
While submitting your payout request, please update your PAN details in the ‘Other Details’ section.
What is Section 194J?
Section 194J covers payment for professional, technical fees, royalty and non compete fees, including directors remuneration.
How can I claim credit for the deducted TDS?
The TDS deducted will be reflected against your PAN on the Income Tax portal. You can claim credit for this amount while filing your Income Tax Return (ITR).
What if I do not provide my PAN details?
If PAN details are not updated:
- TDS will be deducted at a higher rate (20%) as per Section 206AA of the Income Tax Act.
Where do I update my PAN details?
While submitting your payout request, please update your PAN details in the ‘Other Details’ section.
For any doubts or assistance related to TDS deductions on payouts, please contact our support team at support@fronicmedia.com