194j tds rate: TDS on Professional Fees under

TDS on Professional Fees under Section 194J mandates a 10% deduction on professional services and 2% on technical services for payments above ₹30,000. This article covers eligibility, rates, exemptions, filing deadlines, and penalties to ensure compliance and avoid legal issues. Section 194J covers payment for professional, technical fees, royalty and non compete fees, including directors remuneration. TDS is deducted at 10% for professional services, royalty and directors remuneration, 2% for technical services. Where PAN is not provided by the recipient, 20% TDS is deducted. " The rate of TDS shall be increased by applicable surcharge and Health & Education cess. The existing section code 194J (i.e. Fees for Professional or Technical Services) has been sub-divided now into two sections, 194J (a) and 194J (b), effective from 7th August 2020. u/s 194J (a) of the Income Tax Act, is related to TDS deduction on fees for Technical Services, and u/s 194J (b) of the Income Tax Act is related to TDS deduction on fees for Professional Services. Every person excluding an individual or a HUF, making payment to a resident for notified services, will be covered u ...