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TDS is deducted under 194J

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Armaan Shadab

3 Points Posted on 25 December 2021

1. TDS is deducted under 194J can claim presumptive taxation scheme under section 44ADA to declare profits at 50%.

2. Maximum tax consultants are paid is 11% whereas salaried are 33%, if my TDS is deducted under 194J, I fall under which income tax bracket.

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Quick Summary

This discussion clarifies whether TDS deducted under Section 194J permits claiming the presumptive taxation scheme under Section 44ADA. While not automatically allowed, it explores the possibility of still claiming it if it results in tax savings. It also touches upon the differing tax rates for consultants versus salaried individuals and how 194J TDS impacts one's income tax bracket.