Fees for professional or technical services. 194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of— (a) fees for professional services, or. (b) fees for technical services, or. (ba) Every person excluding an individual or a HUF, making payment to a resident for notified services, will be covered u/s 194J (a) & 194J (b) in the Income Tax Act. Payments that are being covered u/s 194J (a) Payments that are being covered u/s 194J (b) Tax Deduction Rate. Threshold Exemption Limit. Section 194JB of the Income Tax Act mandates tax deduction at source (TDS) on payments made to professionals or technical service providers. Individuals or Hindu Undivided Families (HUFs) not subject to tax audits must deduct 10% of TDS if payments exceed ₹50,000 in a financial year. This provision ensures compliance with tax obligations and helps prevent tax evasion, promoting transparency in payments for professional services. In this blog, we will explore the key aspects of this ... The primary distinction between Section 194J (a) and 194J (b) lies in the TDS rate applied to different categories of payments. Any consideration (including any lump sum consideration) for the rendering of managerial, technical, or consultancy services.
