Individual Professional Fees - Tds

Individual person If Pay Rs.2,00,000/- As a Professional Fees to An another INDIVIDUAL .

Will there be any TDS to be Deducted ?

Here both the party are an INDIVIDUAL PERSON .

Thanks

Replies (3)

if it is for personal use then no TDS has to be deduted.

If the person who is paying the fee is covered under section 44AB i.e he is specified under Tax audit then TDS has to be deducted

Dear Bimal,

        In case where an individual/HUF is making payment of any professional fees, that is exclusively for his personal purposes, TDS need not be deducted. This exemption is available only for PROFESSIONAL FEES. It does not apply to FEE FOR TECHNICAL SERVICE, ROYALTY AND NON-COMPETE FEE REFERRED U/S.28(VA). It applies to an individual or HUF only when the payers gross turnover exceeds the limits prescribed u/s.44AB in the immediately preceding year

I agreed with above replies.

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