Tds on honorarium paid to secretary of society
This query is : Resolved
11 June 2015
whether we have to deduct TDS on Honorarium paid to secretary by an educational institution. total honorarium for an year will be around Rs.6 Lacs.
11 June 2015
yes, TDS is need to be deducted.
The option can be section 192 or 194J
CA Kapil Verma
Founder- www.taxadvizer.com
The option can be section 192 or 194J
CA Kapil Verma
Founder- www.taxadvizer.com
23 June 2015
Dear Sir
pls clarify under which section we have to deduct TDS either in 192 or 194J. because TDS calculation method and amount both will be different in both sections.
whether honorarium will b treated as salary or professional fee ? justification for the treatment ?
pls clarify under which section we have to deduct TDS either in 192 or 194J. because TDS calculation method and amount both will be different in both sections.
whether honorarium will b treated as salary or professional fee ? justification for the treatment ?
27 July 2025
Good question! Here’s the deal on **TDS on honorarium paid to a secretary of a society**:
---
### Which section to deduct TDS under: 192 or 194J?
* **Section 192 (TDS on Salary)** applies if the payment is considered **salary**.
* **Section 194J (TDS on Professional Fees)** applies if the payment is treated as **professional or contractual fees**.
---
### How to decide if it’s salary or professional fees?
1. **Salary (Section 192):**
* If the secretary is an **employee** of the educational institution or society (working under a contract of service, with fixed monthly remuneration, duties under control of the employer), then honorarium will be considered **salary**.
* In this case, TDS under **section 192** applies.
* Salary TDS involves slab-based tax rates, advance tax credits, and certain exemptions (like standard deduction).
2. **Professional Fees (Section 194J):**
* If the secretary is **not an employee**, but is paid honorarium as a contract/consultancy/independent service provider (contract for service, not employment), then it will be considered **professional fees**.
* Here, TDS under **section 194J** applies @ 10%.
* No exemptions or slabs; flat 10% on the fees.
---
### Justification & Common Practice:
* **If secretary is appointed formally as an employee:** TDS under **192** with appropriate salary calculations.
* **If secretary is honorary or working independently without employment contract:** TDS under **194J**.
---
### Your case:
If it’s a society and secretary is generally not an employee but paid honorarium for services, **194J is typically used**.
---
If you want, I can help you draft the correct TDS calculations or letter explaining this for your records. Need that?
---
### Which section to deduct TDS under: 192 or 194J?
* **Section 192 (TDS on Salary)** applies if the payment is considered **salary**.
* **Section 194J (TDS on Professional Fees)** applies if the payment is treated as **professional or contractual fees**.
---
### How to decide if it’s salary or professional fees?
1. **Salary (Section 192):**
* If the secretary is an **employee** of the educational institution or society (working under a contract of service, with fixed monthly remuneration, duties under control of the employer), then honorarium will be considered **salary**.
* In this case, TDS under **section 192** applies.
* Salary TDS involves slab-based tax rates, advance tax credits, and certain exemptions (like standard deduction).
2. **Professional Fees (Section 194J):**
* If the secretary is **not an employee**, but is paid honorarium as a contract/consultancy/independent service provider (contract for service, not employment), then it will be considered **professional fees**.
* Here, TDS under **section 194J** applies @ 10%.
* No exemptions or slabs; flat 10% on the fees.
---
### Justification & Common Practice:
* **If secretary is appointed formally as an employee:** TDS under **192** with appropriate salary calculations.
* **If secretary is honorary or working independently without employment contract:** TDS under **194J**.
---
### Your case:
If it’s a society and secretary is generally not an employee but paid honorarium for services, **194J is typically used**.
---
If you want, I can help you draft the correct TDS calculations or letter explaining this for your records. Need that?
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