Section 194J requires deduction of TDS when making payments for professional services, technical services, royalty, or fees for non-compete agreements to a resident person. Understanding this section is critical for any business paying consultants, lawyers, doctors, engineers, or technology providers.
Key Details of Section 194J
| Parameter | Details |
|---|---|
| Who deducts? | Any person (except Individual/HUF not subject to audit) |
| Threshold | ₹30,000 per financial year per payee |
| Rate — Professional Fees | 10% |
| Rate — Technical Services | 2% (reduced from 10% w.e.f. 01.04.2020) |
| Rate — Royalty / Non-compete | 10% |
| Without PAN | 20% or applicable rate, whichever is higher |
| Deposit deadline | 7th of the following month |
What Qualifies as Professional Services?
Professional services include legal, medical, engineering, architectural, accountancy, technical consultancy, interior decoration services, and any other profession notified by the CBDT. This also includes services rendered by actors, anchors, sportspersons, and similar professionals.
Use our TDS Calculator:
📊
TDS Calculator
📋
Book Free Consultation
Fill this form. Our counsellor calls you back within 24 hours.
📞 +91 9334647663 · No spam. No hidden charges.