Section 194J - TDS for Professional or Technical Services
5paisa Research Team
Last Updated: 11 Jun, 2025 02:48 PM IST

Content
- Introduction
- What is Section 194J?
- Types of Payments in 194J
- Amendments in TDS Section 194J
- Who Can Deduct TDS under Section 194J?
- Section 194J of Income Tax Act TDS rate
- Payments that are Protected by Section 194J
- Consequences of Non-Deduction or Late Deduction
- Applying for TDS at a Lower Rate
- Time Limit to Deposit TDS under Section 194J
Introduction
Section 194J of Income Tax Act stipulates that any person responsible for making payments to a professional or technical service provider shall deduct tax at source (TDS) on the payment made. This section defines the applicability of TDS in various situations and provides an overview of the procedures and guidelines followed by a payer while deducting TDS. In this article, we will discuss 194J of Income Tax Act in detail and provide an insight into the various provisions of this section.
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Frequently Asked Questions
The amount of TDS deducted can be confirmed by obtaining a copy of Form 26AS from the income tax website. It is an important document to verify whether taxes have been paid and will help in understanding the amount of TDS deducted under Section 194J for any particular financial year.
TDS to be deducted under Section 194J is generally 10% for professional fees, technical fees, and royalty payments. However, the rate of TDS applicable on payments made to contractors or subcontractors is 2%. Additionally, lower rates or complete exemptions can also be applied after making an application in Form 13.
Yes, payments made to a model in exchange for the use of their services or intellectual property rights may be subject to TDS deduction under 194J of the Income Tax Act. The TDS rate applicable is 10%. However, lower rates or complete exemptions can also be applied after applying in Form 13.
As per 194J of the Income Tax Act, any person making specified payments such as fees for professional or technical services, royalty payments, and payments to contractors and subcontractors in cash or cheque must deduct TDS at the prescribed rate.
The Section 194J of Income Tax Act covers payments made for professional fees, technical fees, royalty payments, and remuneration/fees or commissions paid to agents. It also covers payments made to contractors and subcontractors. Payers are advised to comply with their TDS obligations under Section 194J to avoid any penalties or legal implications.
Since the director is an employee of the company, Section 194J does not apply to the salary payment. Instead, taxes must be deducted as per the provisions under Section 192 of the Income Tax Act. However, any payments made to directors over and above their salaries, such as fees or commission, will be subject to TDS deduction under Section 194J.
If a person's income qualifies for Sections 192 and 194J, they should file their taxes using ITR-2. This form can be used by individuals having income from salary, single house property, and other sources (including winning from lotteries and racehorses) and have claimed exemption under sections 10 or 11.
No, a stipend is not subject to professional tax under Section 194J. This section only applies to payments made for professional services or technical services, royalty payments, and payments to contractors and subcontractors.
To claim TDS under Section 194J, the payer must deduct taxes at the applicable rate and then deposit it within 7 days of the next month in which the tax has been deducted. The deductor must also file quarterly TDS returns on or before the due date in Form 24Q.