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TDS UNDER 194j

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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)

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 .

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.


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