Tds

This query is : Resolved

Mahesh K Agarwal (Querist)
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03 September 2009 Should we deduct TDS on payment of Rs 20000 or more p.a to faculty of an oral coaching centre as honrarium cum conveyance bill??

Nischint Kumar Somani

Nischint Kumar Somani (Expert)
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03 September 2009 yes you have to deduct TDS

Mahesh K Agarwal

Mahesh K Agarwal (Querist)
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03 September 2009 Under which section and which head and the rate of TDS?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 For payment of honorarium cum conveyance to a faculty member at an oral coaching centre, here’s how TDS works:

### 1. **Whether TDS is deductible?**

Yes, if total payment exceeds Rs. 20,000 in a financial year, TDS is applicable.

### 2. **Under which Section?**

* **Section 194J** – TDS on fees for professional services.

### 3. **Under which Head in Income Tax?**

* The payment would typically be treated as **"Income from Business or Profession"** for the faculty (assuming they are not salaried).

### 4. **Rate of TDS:**

* **10%** (for professional fees under section 194J).

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### Additional Notes:

* If the payment is purely honorarium without any service, then Section 194C or 192 may not apply.
* But since this is payment for services rendered (teaching/coaching), it falls under **194J**.
* If the faculty provides PAN, deduct TDS at 10%. If PAN is not provided, deduct at 20%.

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