{"id":24074,"date":"2022-01-17T10:00:54","date_gmt":"2022-01-17T10:00:54","guid":{"rendered":"https:\/\/www.legalraasta.com\/blog\/?p=24074"},"modified":"2026-04-07T17:15:37","modified_gmt":"2026-04-07T11:45:37","slug":"section-194j","status":"publish","type":"post","link":"https:\/\/www.legalraasta.com\/blog\/section-194j\/","title":{"rendered":"Section 194J &#8211; TDS on Professional\/Technical Fees"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">According to the rules and regulations of Section 194J of the Income Tax Act, 1961, when certain payments are made to a specified resident, a person must deduct their <strong><a href=\"https:\/\/www.legalraasta.com\/tds-return\/\">Tax Deducted at Source<\/a><\/strong> (TDS) alone at the rate of 10%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">TDS (tax deduction at source) has shown to be a highly effective method of collecting taxes in the country by focusing on the source of income. It also makes it easier for people to pay their taxes when it comes time to file their tax returns. This is because they are given credit for taxes deducted at the source.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Professional fees, often known as fees for technical services, are one of the most important and typical types of payments made by a business. Professional fees include those paid to a lawyer, doctor, engineer, architect, chartered accountant, interior decorator, and others. Technological services include management, technical, and consulting services, for example. Payments made to residents are covered by Section 194J.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Payments_that_are_covered_by_Section_194J\" title=\"Payments that are covered by Section 194J\">Payments that are covered by Section 194J<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Services_for_Professionals\" title=\"Services for Professionals\">Services for Professionals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Technical_Support\" title=\"Technical Support\">Technical Support<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Fees_for_non-competition\" title=\"Fees for non-competition\">Fees for non-competition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Royalty\" title=\"Royalty\">Royalty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Cases_in_Point\" title=\"Cases in Point\">Cases in Point<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Section_194J_on_TDS_Highlights\" title=\"Section 194J on TDS Highlights\">Section 194J on TDS Highlights<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Obtaining_TDS_at_a_Reduced_Cost\" title=\"Obtaining TDS at a Reduced Cost\">Obtaining TDS at a Reduced Cost<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Section_194J_establishes_a_time_limit_for_depositing_TDS\" title=\"Section 194J establishes a time limit for depositing TDS.\">Section 194J establishes a time limit for depositing TDS.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Limit_on_how_much_tax_can_be_deducted\" title=\"Limit on how much tax can be deducted\">Limit on how much tax can be deducted<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Those_who_are_required_to_deduct_taxes\" title=\"Those who are required to deduct taxes\">Those who are required to deduct taxes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Rate_of_Tax_Deduction_Under_Section_194J\" title=\"Rate of Tax Deduction Under Section 194J\">Rate of Tax Deduction Under Section 194J<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Deduction_Period_Under_Section_194J\" title=\"Deduction Period Under Section 194J\">Deduction Period Under Section 194J<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Consequences_of_not_deducting_or_deducting_late\" title=\"Consequences of not deducting or deducting late\">Consequences of not deducting or deducting late<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#The_deadline_for_filing_a_tax_return_has_passed\" title=\"The deadline for filing a tax return has passed.\">The deadline for filing a tax return has passed.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Payments_that_are_covered_by_Section_194J\"><\/span><b>Payments that are covered by Section 194J<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Individuals should deduct TDS at a rate of 10% when making the following payments to residents in a fiscal year (above Rs.30,000):<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The amount charged as a fee for professional services<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amount charged as a service fee for technical assistance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u2022 Non-compete fee under Section 28(VA) of the Internal Revenue Code<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Services_for_Professionals\"><\/span><b>Services for Professionals<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It refers to a medical, architectural, legal, medical, or engineering professional&#8217;s services. Additional services include accounting, interior design, advertising, technical consultation, and any other profession recognised by the Board under Section 44AA.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other services covered by Section 44AA include film artists, business secretaries, and authorised representatives, as well as athletes, event organizers, commentators, anchors, umpires and referees, coaches and trainers, physiotherapists, team physicians, and sports columnists.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Technical_Support\"><\/span><b>Technical Support<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It is a term that describes a person&#8217;s consulting, technical, or managerial services.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because the income from assembly, mining, and building would be included in the recipient&#8217;s head salary, they are not considered technical services.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fees_for_non-competition\"><\/span><b>Fees for non-competition<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The amount paid in cash or in kind in exchange for an agreement prohibiting the person from sharing any patent, licence, franchise, trademark, know-how, commercial or business rights, technique, or information that could be used elsewhere for manufacturing, processing, or any other provisional service is referred to as non-compete fees for Section 194J.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Royalty\"><\/span><b>Royalty<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A royalty is a payment made in exchange for<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">the sale of an invention, a secret formula, a model, a design, a trademark, or a patent.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Making use of a new idea, a prototype, a patent, and so forth.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Disseminating information about how to use an invention, patent, recipe, or other such object.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The right to utilize the equipment for industrial, scientific, or commercial purposes.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">There will be no monetary compensation for the sale, presentation, or distribution of literary works, scientific findings, films, or videotapes for radio broadcasting.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Cases_in_Point\"><\/span><b>Cases in Point<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">TDS deductions are also available under Section 194J, as established by the department&#8217;s case laws and circulars:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hospitalized medical care is available.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Professional fees are charged by advertising companies to film artists.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amount paid to HR consulting agencies and recruitment firms.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Companies pay registrants for their information.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Section_194J_on_TDS_Highlights\"><\/span><b>Section 194J on TDS Highlights<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under Section 194J, the maximum limit is Rs.30,000, which applies to each item or payment separately.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commissions, remuneration, or fees paid to a company&#8217;s director are subject to TDS under this section, even if the amount is not included in the primary salary. In other cases, the Rs.30,000 restriction does not apply.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Obtaining_TDS_at_a_Reduced_Cost\"><\/span><b>Obtaining TDS at a Reduced Cost<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to Section 197, the person receiving payment can request a lower <strong><a href=\"https:\/\/www.legalraasta.com\/tds-return\/\">TDS rate<\/a><\/strong> by filling out Form 13 and mailing it to the assessing officer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the officer accepts, the assessee receives a certificate confirming a TDS deduction.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Section_194J_establishes_a_time_limit_for_depositing_TDS\"><\/span><b>Section 194J establishes a time limit for depositing TDS.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>The following is the time limit for filing TDS under this section:<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">If the government, or someone acting on its behalf, deducts TDS under Section 194J, the deposit must be made on the same day.<\/span><\/li>\n<li>In other cases, TDS can be deposited a week after the tax deduction is made at the end of the month.<\/li>\n<li>If the payment is made on the last day of the fiscal year, the TDS deposit must be made within two months of the payment&#8217;s conclusion.<\/li>\n<li>Some unique circumstances may be allowed to deduct TDS every quarter if the assessing officer approves.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Limit_on_how_much_tax_can_be_deducted\"><\/span><b>Limit on how much tax can be deducted<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Tax must be deducted if the amount exceeds Rs. 30,000 during the year. Payments to a director, on the other hand, are exempt from the rule. The tax must be deducted, no matter how small the amount.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Those_who_are_required_to_deduct_taxes\"><\/span><b>Those who are required to deduct taxes<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Everyone who makes a payment in the form of fees for professional or technical services is required to deduct tax at source, with the following exceptions:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">If the previous financial year&#8217;s turnover was less than Rs. 1 crore for a sole proprietorship or a HUF.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">In the case of a sole proprietorship or a HUF with a previous financial year turnover of less than Rs. 50 lakh.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To put it another way, all entities (excluding individuals and HUFs who were not audited the previous year) are required to deduct tax.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Rate_of_Tax_Deduction_Under_Section_194J\"><\/span><b>Rate of Tax Deduction Under Section 194J<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">On any payment made under this provision, TDS will be deducted at a rate of 10%.<\/span><\/li>\n<li>Beginning April 1, 2020, payments for technical support fees will be subject to a 2% TDS surcharge.<\/li>\n<li>Beginning April 1, 2017, a reduced rate of 2% will be deducted from compensation made to call centre operators.<\/li>\n<li>If the payee fails to submit his PAN, a 20 percent deduction will be applied.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Deduction_Period_Under_Section_194J\"><\/span><b>Deduction Period Under Section 194J<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The tax should be deducted at the point of sale.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2022 Entering such a transaction in the books of accounts; or <\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2022 Making a complete payment for the expense.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whichever comes first is the winner.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Services for Professionals and Technicians Examples of TDS<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Mr. Jay used Mr. Veer&#8217;s professional services in fiscal year 2021-22. The first payment was made in April for Rs. 55000, and the second payment was made in December for Rs. 22000. Let&#8217;s take a look at the TDS obligation in three distinct scenarios for FY 2021-22:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under section 44AB, Mr. Jay is exempt from audit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mr. Jay is the subject of a section 44AB audit because he used the service for personal advantage.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In the fiscal year 2021-22, Mr. Jay is subject to a tax audit under section 44AB, and he has hired a professional for business purposes.<\/span><\/li>\n<\/ol>\n<p><strong>Case 1<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Mr. Jay is not compelled to withhold tax from Mr. Veer&#8217;s payment since he is not subject to a tax audit under Section 44AB.<\/span><\/p>\n<p><strong>Case 2<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Mr. Jay did do some professional work as a volunteer, but it was for personal reasons. As a result, there is no need to deduct TDS when paying for such services.<\/span><\/p>\n<p><strong>Case 3<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">If Mr. Jay is the subject of a Tax Audit and he uses professional services for commercial purposes, TDS of 10% at the rate of Rs. 55,000 must be deducted at the time of payment or crediting the accounts, whichever comes first. The reason for this is that the transaction exceeded the Rs. 30,000 threshold.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Similarly, because the transaction amount in the financial year exceeded the threshold limit, TDS should be withheld from all payments made to Mr. Veer. As a result, tax on the second payment of Rs. 22,000 would likewise be deducted at source.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Consequences_of_not_deducting_or_deducting_late\"><\/span><b>Consequences of not deducting or deducting late<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are two implications of failing to deduct the tax or deducting the tax late:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2022 Disallowance of a portion of the expenditure: 30 percent of the expenditure is rejected in the year in which it is claimed (added to the profit and loss account); nevertheless, the 30 percent denied is re-allowed in the year in which the TDS is paid to the government.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2022 Interest levy till payment date: If the tax is not paid on time, interest, as well as TDS, must be paid to the government. The interest rate is calculated using the following formula:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2022 If no tax deduction has been made, interest will be levied at 1% each month\/part of month from the due date of the tax until the due date of the tax deduction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u2022 Where tax has been deducted but not paid to the government, interest at the rate of 1.5 percent per month\/part of the month will be charged from the date the tax was deducted to the date the tax was paid to the government.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_deadline_for_filing_a_tax_return_has_passed\"><\/span><b>The deadline for filing a tax return has passed.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td>&nbsp;<\/td>\n<td><b>Deductor not paid by the government<\/b><\/td>\n<td><b>Deductor for the government<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Before the 1st of March, make a payment.<\/b><\/td>\n<td><span style=\"font-weight: 400;\">7th day after the month&#8217;s conclusion<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7th day after the month&#8217;s conclusion<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>In the month of March, you made a payment.<\/b><\/td>\n<td><span style=\"font-weight: 400;\">30th of April<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The tax is paid to the payee on the date of payment, but the challan must be deposited by the 7th day after the month&#8217;s end.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><b>Frequently Asked Questions<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>What is the best way to figure out how much tax I&#8217;ve deducted under section 194J?<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Form 16 from the deductor or Form 26AS from TRACES or the income tax filing website can be used to examine your TDS details.<\/span><\/p>\n<p><strong>Is section 194J applicable to the payment of a company&#8217;s director&#8217;s remuneration?<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The company&#8217;s director provides management services. As a result, any payment due or received to the director in the form of sitting fees, remuneration, or any other item (other than a salary) will be subject to the restrictions of section 194J. Technical service costs are subject to a 2% TDS since managerial services are technological in nature.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Professional services were valued Rs. 10,000 for the first time in a financial year, and Rs. 50,000 for the second. How much TDS should be deducted if the transaction amount exceeds the threshold limit?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because the limit was not exceeded for the first time, no TDS should be deducted at Rs. 10,000. However, the transaction value exceeds the Rs. 30,000 threshold limit while making a second payment (for professional services). As a result, TDS on the full sum of Rs. 60,000 will be deducted at a rate of 10%.<\/span><\/p>\n<blockquote><p>Read, also:\u00a0<a href=\"https:\/\/www.legalraasta.com\/blog\/section-194i\/\">Section 194I- TDS on Rent<\/a><br \/>\n<a href=\"https:\/\/www.legalraasta.com\/tds\/section-194a\/\">Section 194A TDS on Interest apart from Interest on Securities<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>According to the rules and regulations of Section 194J of the Income Tax Act, 1961, when certain payments are made to a specified resident, a person must deduct their Tax Deducted at Source (TDS) alone at the rate of 10%. TDS (tax deduction at source) has shown to be a highly effective method of collecting taxes [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":24711,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[510],"tags":[4909,4912,4910,4911],"class_list":["post-24074","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tds","tag-section-194j","tag-section-44aa","tag-tds-on-professional","tag-tds-on-technical-fees"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Section 194J - TDS on Professional\/Technical Fees<\/title>\n<meta name=\"description\" content=\"A person must deduct their Tax Deducted at Source solely at the rate of 10%, according to the norms and regulations of Section 194J of the Income Tax Act, 1961.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Section 194J - TDS on Professional\/Technical Fees\" \/>\n<meta property=\"og:description\" content=\"A person must deduct their Tax Deducted at Source solely at the rate of 10%, according to the norms and regulations of Section 194J of the Income Tax Act, 1961.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.legalraasta.com\/blog\/section-194j\/\" \/>\n<meta property=\"og:site_name\" content=\"LegalRaasta Knowledge portal\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-17T10:00:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-07T11:45:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.legalraasta.com\/blog\/wp-content\/uploads\/2021\/10\/Section-194J.png\" \/>\n\t<meta property=\"og:image:width\" content=\"700\" \/>\n\t<meta property=\"og:image:height\" content=\"380\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Author: LegalRaasta\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Author: LegalRaasta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.legalraasta.com\\\/blog\\\/section-194j\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legalraasta.com\\\/blog\\\/section-194j\\\/\"},\"author\":{\"name\":\"Author: LegalRaasta\",\"@id\":\"https:\\\/\\\/www.legalraasta.com\\\/blog\\\/#\\\/schema\\\/person\\\/8fffceba7148ae1120f0bd4bf73b0c62\"},\"headline\":\"Section 194J &#8211; 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