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Can tds deducted under section 194j be considered as busines

Neha sharma (-) (1257 Points)

10 July 2017

Can the TDS Deducted under Section 194J be considered as Business Income and discosed under Section 44AD?

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9 Replies

Kiran. S (CTO) (745 Points)
Replied 10 July 2017

194J is TDS for Profesional or technical services

Deval M. Thakkar (Student CA Final and Article Assistant at Talati & Talati Ahmedabad) (368 Points)
Replied 10 July 2017

not under 44ad it should be under 44ADA as it is professional income

1 Like

Neha sharma (-) (1257 Points)
Replied 25 July 2017

The payment has been received for HR Recruitment Service.

HR Recruitment is not considered a Profession and is considered as a Business and therefore Section 44AD should be applicable.

But the TDS has been deducted under Section 194J. What to do?

Sharad (Professional) (73 Points)
Replied 28 July 2017

Awaiting opinion on this query. Pls reply experts.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 28 July 2017

As correctly suggested by Ms. D.M.Thakker....... TDS under section 194J is deducted for professional fees or technical services, should attract section 44ADA. But the constitution of the service provider is to be checked in each case. eg. Doctor individual will differ with Hospital services. Architect individual and that by any engineering consulting firm. Generally professional properitor providing service will attract section 44ADA.

Sharad (Professional) (73 Points)
Replied 28 July 2017

Thank you @ Dhirajlal Rambhia sir.

In one of my client, the client is a retired senior citizen. He has a good experience in Insurance Sector. He got approx 5 Lacs as consultancy fees from an insurance company. TDS deducted u/s 194 J.

Other interest income is approx Rs. 4 lacs.

Query: For Consultacncy Fees of Rs. 5 Lacs - should we go for 44AD @ 8 % or 44ADA @ 50 %

Please share your kind advice.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 28 July 2017

" He got approx 5 Lacs as consultancy fees from an insurance company. TDS deducted u/s 194J."

What is the nature of consultancy provided......... Or is it any sort of commission income?

Sharad (Professional) (73 Points)
Replied 28 July 2017

This is not commission nature. It is fixed fees received montly. Actually its like a job but employer paying u.s 194J.

Nature of work is just like a service in an insurance broker company.

Pls advice.

Thanks for your efforts.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 28 July 2017

The parameters are not matching anywhere. If commission nature..... section 194H applicable.......... If salary nature........ section 192 comes into picture.......

Now for final, what is qualification of the person, and what the contract or appointment letter suggests?