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TDS on website development

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nisha hussain

35 Points Posted on 06 January 2022

Is tds applicable to website design and development changes u/s 194JA ? applicable rate?

Replies (2)

Quick Summary

TDS applies on website design and development as technical services under section 194J. The applicable TDS rate is generally 2 percent.

Sarthak Kumar Dash

Student

144 Points Posted on 06 January 2022

Yes. Website Design and Development comes under the defination of Technical Fees as defined in Incoms tax Act. Applicable Rate of TDS will be 2% under sec 194JA.

Aashok Kumar Sharma

Finance/Compliance Consultant

77925 Points Posted on 06 November 2026

Correction: there is no Sec 194JA. The options are:

• Sec 194C (1%/2%): website design and development under a contract to specification is "work". Many companies apply 194C, and tribunals have largely accepted that website development is not "technical services".

• Sec 194J(a) at 2%: if the contract is mainly for technical services, such as hosting with technical support or software maintenance.

• Sec 194J(b) at 10%: only if rendered as a professional service. Software/IT professionals are a notified profession under Sec 44AA, so if the developer is an individual IT professional, 10% under 194J is the safer view.

Thresholds: 194C is Rs 30,000 per payment or Rs 1 lakh a year; 194J is Rs 50,000 a year (from 1 April 2025).

From 1 April 2026, use the corresponding entries of Sec 393 of the Income-tax Act, 2025.

Deduct on the value excluding GST if GST is shown separately. Payments to a non-resident developer fall under Sec 195 instead.