Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

TDS UNDER 194j

323 views

Save Share

Join Us Follow Us Add as Source

Avinash Jeevan Dsouza

Accounts Officer & In charge

2441 Points Posted on 27 October 2020

Please let us know the TDS implication uder Section

194J(a) rate of TDS whether its 7.5% or 1.5%/0.75% - for which type of service its applicable?

194J(b) rate of TDS whether its 7.5% or 1.5%/0.75% - for which type of service its applicable?

Replies (2)

Quick Summary

This discussion clarifies the Tax Deducted at Source (TDS) implications under Section 194J of the Income Tax Act. It details the specific TDS rates for professional services (Section 194J(a)) and technical services (Section 194J(b)), noting the reduced rates applicable from May 14, 2020, to March 31, 2021, compared to earlier periods. A threshold limit of Rs. 30,000 generally applies to each payment type, though exceptions exist, such as for director's fees where the limit may not apply.

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 27 October 2020

Section 194 (a) Fees for professional services TDS is 7.5 % from 14/5/2020 to 31/3/2020 earlier it was 10% ,( threshold limit is 30000/- )

Section 194(b) Fees for technical services TDS is 1.5 % from 14/5/2020 to 31/3/2020 earlier it was 2% , limit is ( threshold limit is 30000/- )

reduced rates announced on 13/5/ 2020 , please obtained circular from Income Tax web site or department .

Krishna Chaudhary

Accountant

1331 Points Posted on 16 January 2021

Under Section 194J, Rs.30,000 is the maximum limit which is applicable to each item or payment independently.

TDS under this section is also applicable on commission or remuneration or fees given to a company’s director, even though the amount is not a part of the main salary. In these cases, the Rs.30,000 limit is not applicable.