TDS Rate Chart Section 194J — TDS on Professional and Technical Fees
Section 194J — TDS on Professional and Technical Fees
Income Tax Act 1961 — s.194J · ITA 2025 — s.393 + 402
Rate and threshold
| Condition | Rate |
|---|---|
| Professional services, royalty (general), non-compete fees, director sitting fees | 10% |
| Fees for technical services; royalty for sale/distribution/exhibition of films; call-centre business payee | 2% |
- Threshold
- ₹50,000 aggregate per year, per category (professional fees and technical fees tested separately). No threshold for director sitting fees
- Timing of deduction
- At credit or payment, whichever is earlier. Deposit by the 7th of the following month (30 Apr for March).
- Who deducts
- Any person other than individual/HUF; individuals/HUF if turnover exceeded ₹1 crore (₹50 lakh profession) in the preceding FY
- Payee
- Resident
Threshold history
| Period | Value | Amended by |
|---|---|---|
| Until 31 Mar 2025 | ₹30,000 | — |
| From 1 Apr 2025 | ₹50,000 | Finance Act 2025 |
What this section covers
Professional services (legal, medical, accountancy, engineering, architecture, advertising, notified professions), fees for technical services, director's fees (non-salary), royalty, non-compete fees
Worked example
Startup pays CA firm ₹1,20,000 audit fee
Professional services > ₹50,000 → TDS 10% = ₹12,000.
Software development charges are typically 'technical services' at 2% — classification changes the rate 5x, document the basis.
Under the Income Tax Act 2025
From 1 April 2026, s.194J of the 1961 Act maps to s.393 + 402 of the Income Tax Act 2025 (split mapping, per the official CBDT concordance). Consolidated into the s.393 TDS table under the ITA 2025.
Full 1961 → 2025 mapping for s.194J →Frequently asked questions
Professional vs technical — why does it matter?
Professional services attract 10%; fees for technical services attract 2% (since FY 2020-21). Misclassifying either way creates a short-deduction or excess-deduction problem.
Are director sitting fees under 194J?
Yes — any non-salary director remuneration is covered under s.194J(1)(ba) at 10%, with NO threshold.
Is TDS due on reimbursements to professionals?
Pure reimbursements backed by third-party invoices billed separately are generally outside 194J; consolidated bills attract TDS on the full amount.
Confirm the ₹50,000 threshold applies separately to each 194J category (professional vs technical) for FY 2026-27, and that director-fee no-threshold carve-out carried into the ITA 2025 s.393 table.