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Section 194J TDS on Professional Fees or Technical Services.

Delay in Deduction: If a person fails to deduct TDS on professional fees then he is liable to pay interest at the rate of 1% per month or part of a month. Delay in Payment: If a person has deducted TDS on professional fees and has not paid the TDS within the time limit then he is liable to pay interest at the rate of 1.5% per month or part of a month for delay of payment.

Limit for tds deduction on professional fees

The provisions of deduction of tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. In respect of payments to which the TDS provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the Government.

Limit for tds deduction on professional fees

Non-deduction, Non-payment, and late-payment of TDS attracts fines and penalties and can negatively affect the image and productivity of your business. So, today, we’ll see what you need to do regarding TDS and the consequences - if you fail to comply with the standards.

Limit for tds deduction on professional fees

Tax has to be deducted from fees paid for professional or technical services to any person who is a resident in India. TDS provisions related to fees for professional and technical services are specified in section 194J. As per section 194J, tax has to be deducted from following payments; Fees for professional services, or.

Limit for tds deduction on professional fees

As per Section 194J, each item or independent payment has a threshold maximum limit of INR 30,000. TDS under this section also applies for the fees or remuneration paid to the company’s director even if the payment is not part of the main salary. In such cases, the INR 30,000 limit does not apply here. Applying for TDS at a Lower Rate.

Limit for tds deduction on professional fees

You can claim tax relief on fees or subscriptions you pay to approved professional organisations. This only applies if you have to be a member of an organisation to do your job.

Limit for tds deduction on professional fees

The provisions of deduction of tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. in respect of payments to which the tds provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the government.

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Limit for tds deduction on professional fees

The following guidelines on time limit for depositing TDS under the section must be followed: If the TDS deduction under Section 194J is made by the government or on behalf of the government, the deposit has to be. In other cases, TDS can be deposited within a week from the month end in which the.

Limit for tds deduction on professional fees

Salaried persons do not require to deduct TDS. But individuals running a business partnership, company or proprietorship require to obtain TAN and then only they can deduct TDS. Similarly, individuals who have not obtained TAN cannot deduct TDS while making payments for rent or professional fees to professionals such as lawyers, doctors, etc.

Limit for tds deduction on professional fees

Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. Rs. 50 lakhs: 5%: 194N.

Limit for tds deduction on professional fees

For the deductee, the deducted TDS can be claimed in the form of a tax refund after they file their income tax return. Generally, the TDS rate varies from 1% to 30%. What are Section 197 and 197A? Section 197 and 197A of the Income Tax Act, 1961 provides for the facility of NIL or lower tax rate deduction of TDS (or TDS exemption).

Limit for tds deduction on professional fees

The full form of TDS is tax deducted at source, which means when a payment has to be made to a certain X person, then you will deduct tax from him at a certain rate (TDS rate) set by the Income Tax act of that assessment year if payment exceeds th.

Limit for tds deduction on professional fees

TDS provisions under section 194J would not get attracted, since the limit of Rs 30,000 is applicable for fees for professional services and fees for technical services, separately. It is assumed that there is no other payment to Mr. Ganesh towards fees for professional services and fees for technical services during the P.Y.2015-16.

Limit for tds deduction on professional fees

Rate of Deduction of Tax. Any payment covered under this section shall be subject to TDS at the rate of 10%. However, w.e.f. 01.04.2017, the tax on payments made to operators of call centres shall be deducted at a reduced rate of 2%. In case the payee does not furnish his PAN then the rate of deduction would be 20%. Time of deduction.

Amendment in TDS Section 194J by Finance Act, 2020.

These TDS Rates are applicable upto May 13, 2020. Visit here for Reduced TDS Rates for FY 2020-21 (AY 2021-22) with Threshold Limit w.e.f. May 14, 2020 Find table below for the TDS (Tax Deduction at source) rates and threshold limits for financial year 2020-21 or assessment year 2021-22.The TDS limit on Post Office Savings and Bank deposit have become Rs. 40,000 from Rs. 10,000 now. The TDS threshold has gone up to Rs. 2,40,000 from Rs. 1,80,000 for deduction of tax on rent As said earlier, you are liable to face certain consequences like late fees, interest on the tax amount, and penalties because of non-filing of TDS or TCS return.This guide is applicable for Financial Year 2016-17 and 2017-18. Any person (other than individual or huf who is not liable to audit under section 44AB who is responsible for paying to a resident Fees for professional services Fees for technical services Royalty Any remuneration or fees or commission by whatever name c.


Additionally, an interest of 1% to 1.5% per month of the TDS amount is levied in case of delay in deduction or deposit of TDS to government. To prevent additional penalty: Besides the minimum late filing fees of INR 200, if there is a delay in filing TDS return for one year then an individual or company would be liable for the additional penalty and prosecution.The threshold limit of 75000 has increased to 100000 from AY 2016-17. No TDS is to be deducted by the Individual or HUF for the payment to Contractor if such sum is expended for personal use. No TDS shall be deducted on the amount paid to the contractor provided, he has a business of plying, hiring or leasing of goods and carriages.