Tds to contract lectures in telangana

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2018 I am working on contract basis as a Lecturer in a Polytechnic in Telangana state and getting a consolidated amount of Rs.40,270 Rs per month. My tenure is 10 months in every year and it is to be renewed in every year . My Administrative Officer is planning to cut TDS according to Section 194J. My query is whether its appropriate to apply 194J, as I need to suffice the same earned money for remaining 2 months as my contract terminates for every 10 months and every time there is no certainty that the contract gets renewed once again. Is it not appropriate to apply 192B to contract Lectures ?. Which one is correct kindly clarify my doubt.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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28 February 2018 TDS u/s 192B us applicable to Salaried Employees on Roll, on Contract / Casual lectures on Roll temporary period if you hire particular period either you can apply 192B or 194J @10% professional or Consultancy fees.

Read more at: https://www.caclubindia.com/experts/tds-in-192-b-2633704.asp

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2018 Good evening sir, You are giving two options , we can not apply two ,so kindly give exact section which is applicable to contract Lectures from the data provided by me. This is very much required as early as possible.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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28 July 2025 Gotcha! You’re asking whether TDS should be deducted under **Section 194J** (fees for professional or technical services) or **Section 192B** (payment to contractual employees) for your contract lecturer payment in Telangana.

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### Here’s the breakdown:

#### 1. **Section 192B** — TDS on Contractual Employees (introduced in Finance Act 2017):

* Applicable when payment is made to **contractual employees who are not on the regular payroll but engaged on a contract basis for work/services.**
* Deduction is at 10% on salary-like payments.
* Meant specifically for contract workers/employees who work under some form of employment relationship but not permanent.
* Usually applicable where there is an employer-employee relationship but on contract terms.

#### 2. **Section 194J** — TDS on Fees for Professional or Technical Services:

* Applicable to payments for professional services, consultancy, technical services, etc.
* Deduction rate is generally 10%.
* No employer-employee relationship implied here; the payee is an independent professional/consultant.

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### Your case:

* You are a **contract lecturer** with a **fixed tenure of 10 months**, and your contract is renewed every year.
* There’s no certainty of continuation beyond 10 months, and payment is on contract basis.

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### What should apply?

* If your engagement is **more like a contract of service**, i.e., you work under the direct supervision of the institution, attend work regularly, and are treated as an employee but on contract — **Section 192B** applies.
* If you are working as an **independent professional/consultant** providing teaching services, invoicing for services rendered without employee-like relationship — **Section 194J** applies.

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### Usually, for contract lecturers:

* Many educational institutions treat contract lecturers as contractual employees (even if temporary), and deduct TDS under **Section 192B**.
* If no employer-employee relationship (no fixed timings, freedom to work independently), then **Section 194J** applies.

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### Your specific situation:

Since you are a contract lecturer with a fixed 10-month term and a contract renewed yearly (typical employer-employee contractual relationship), **Section 192B** is the more appropriate section for TDS deduction.

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### Summary:

| Aspect | Section 192B | Section 194J |
| --------------------- | --------------------------------------- | ----------------------------------- |
| Relationship | Contractual employee (service contract) | Independent professional/consultant |
| TDS Rate | 10% | 10% |
| Payment Type | Salary / contractual salary | Professional/consultancy fees |
| Your case likely fits | **Yes** | No (likely) |

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### Final suggestion:

* Your Administrative Officer should deduct TDS under **Section 192B** on your contract lecturer fees.
* You can share this understanding with them, and if needed, refer to the official Income Tax provisions or consult a tax professional for confirmation.

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If you want, I can help draft a note or find the exact circular or act section references for you. Would that help?

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