TDS on professional services (194j)

This discussion clarifies the rules for Tax Deducted at Source (TDS) on professional services. When the total professional service payments in a financial year exceed the threshold limit, TDS should be deducted on the amount exceeding that limit, not the entire sum. In this case, with payments of Rs. 20,000 and Rs. 60,000, the TDS is applicable on the Rs. 60,000 payment as it crosses the threshold.