Section 194J: Definition, Meaning & Guide for Indian Businesses

Section 194J requires TDS on professional and technical service fees. Rate is 10 percent for professional services, 2 percent for technical services. Threshold 30,000 rupees per year.

What is Section 194J?

Section 194J of the Income Tax Act covers TDS on payments for professional fees, technical services, royalty, non-compete fees, and director sitting fees. Professional services include lawyers, doctors, chartered accountants, consultants, architects. Technical services include royalty for technical know-how. Rates: 10 percent for professional services, 2 percent for technical services. Threshold of 30,000 rupees aggregate per FY per payee. Without PAN, 20 percent under Section 206AA.