Tds on training fees

TDS applicability on training fees paid to the Brihan Mumbai Nagri Sahakari Banks Association Ltd, Mumbai depends on the nature of the payment and the recipient's status.

 TDS Applicability:

1. *Section 194J of the Income-tax Act, 1961*: TDS is applicable on fees paid for professional or technical services, including training fees. 

2. *Recipient's Status*: Since the Brihan Mumbai Nagri Sahakari Banks Association Ltd is a cooperative society, it is not exempt from TDS under Section 194J. 

Exemptions: 1. *Section 194J(1)(vi)*: Exempts TDS on payments made to educational institutions, universities, or hospitals.

2. *Notification No. 21/2017*: Exempts TDS on payments made to research associations, universities, or colleges. Analysis: Based on the information provided: 

1. *Training Fees*: The payment is for training fees, which falls under professional or technical services. 

2. *Recipient*: The Brihan Mumbai Nagri Sahakari Banks Association Ltd is a cooperative society, not exempt from TDS under Section 194J. Conclusion: TDS is applicable on the training fees paid to the Brihan Mumbai Nagri Sahakari Banks Association Ltd, Mumbai. The TDS rate would be 10% (plus applicable surcharge and cess) under Section 194J.

 Next Steps:

1. *Verify the Recipient's PAN*: Ensure the recipient has a valid PAN to avoid higher TDS rates. 

2. *Deduct TDS*: Deduct TDS at the applicable rate and deposit it to the government within the stipulated time frame.

 3. *Issue TDS Certificate*: Provide a TDS certificate (Form 16A) to the recipient within 15 days from the due date of furnishing the TDS statement.

Training fees paid to a professional institute providing technical or professional training generally fall under Section 194J. The rate is 2% if it qualifies as technical services and 10% for professional services. The Rs 30,000 annual threshold applies per payee, so if total payments to that institute stay under Rs 30,000 in the year, TDS is not deducted. The section numbering for 194J changed under the Income Tax Act 2025, so if you are checking compliance for FY 2026-27, this [Income Tax changes FY 2026-27 SME guide](https://taxgarden.in/blog/income-tax-changes-fy-2026-27-sme-guide) has the updated provisions.