U/s.194J(a)and (b)- certain doubt

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There's a common confusion regarding Section 194J(a) and (b) of the Income Tax Act, 1961, concerning TDS rates for professional and technical services. While the Act specifies different clauses for each, the tax department's software and forms often reverse this mapping. Despite this technical misalignment, the key is to ensure TDS is paid at the correct rates (10% for professional, 2% for technical) using the appropriate rate codes. Following the department's standardized, albeit reversed, codes is crucial for compliance.

T.N.Reddy

T.N.Reddy (Querist)

08 September 2025 Sir, As per the Act,1961, U/s.194J(1) has 5 clauses such as (a)Fee for professional services, (b) fee for technical services, (ba) etc, etc,. Now the TDS rate for (a) is 10% and for (b) 2%, but when we see the TDS module from the department, it is made as 194J(a) is for fee for technical services and (b) is for fee for professional services. Even when we observe the 26AS ie. ATS down below table speaks the same. When we file eTDS returns also, the system takes (a) is towards technical services and (b) is towards fee for professinial serevices. So, is it mistake in the TDS module made by the Dept. and if it is mistake we are also following the same mistake I hope. Kindly clarify as to whether my observation is correct.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 September 2025 Yes, this is a recognized technical misalignment in the department’s software. However, as long as filings and TDS are paid at the correct rates under the appropriate rate code (94JA for 2%, 94JB for 10%), there are no compliance risks.

The tax department, portals, and utilities have standardized this reversed mapping for practical reasons, and following their codes (even if reversed from the statutory order) is correct and necessary for compliance.

T.N.Reddy

T.N.Reddy (Querist)

09 September 2025 Thank you so much sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

09 September 2025 You are welcome.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

20 September 2025 Good Luck..

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