Section 194J - TDS on Fees for professional or technical services (as amended by Finance Act 2025)

• Applicability

Any person other than Individual & HUF who is responsible for paying to a resident any sum by way of -

(a) fees for professional services

(b) fees for technical services

(c) royalty

(d) any remuneration, fees or commission to a director of a company (other than those which are covered in Section 192)

shall deduct TDS, if such sum or aggregate of such sum paid or credited during the financial year exceeds Rs. 50,000.

Note: Individual & HUF is also required to deduct TDS, if last year turnover is more than Rs. 1 crore in case of business or Gross receipt is more than Rs. 50 lakhs in case of profession.

• Rate of TDS

In case of fees for technical services or royalty - 2%

In any other case - 10%

• Time for deducting TDS

At the time of credit of such Income to the account of payee or at the time of payment whichever is earlier.

Note 1 : Individual & HUF are not required to deduct TDS, if such sum is credited or paid exclusively for personal purpose of Individual or member of HUF.