Is TDS applicable on professional fees?
An individual should deduct TDS at the rate of 10% when the following payments are made to a resident, in a fiscal year (higher than Rs. 30,000): Amount charged as professional services fee. Amount charged as technical service fee.
TDS is required to be deducted @1% on the whole amount as the total payment in the year exceeds Rs 75,000. Example 2 – In the above example if the contractor A is a Partnership Firm in place of individual. TDS is required to be deducted @ 3% as the sum exceeds the threshold limit of Rs 30,000 in single payment.
On which amount TDS is deducted under 194J?
Rs.30,000/-
30,000
How can I save TDS on professional fees?
Exemption. TDS on Professional Fees is not required to be deducted in the following cases: If payment is made by an Individual or Hindu Undivided Family exclusively for personal purposes. If the assessee has applied to the Assessing Officer for no TDS or TDS at a lower rate u/s 197.
TDS Rate Charts for the FY 2022-23
Is TDS applicable on professional fees of Rs 30000?
Threshold limit for deducting tax Please note, this Rs 30,000 maximum limit is applicable to each item or payment independently. For example, ABC company paid Rs 25,000/- as royalty and Rs 20,000/- as fees for technical services to Mr.PK. Here ABC company is not liable to deduct TDS from payments made to Mr.PK.15-Aug-2022
The Internal Revenue Service allows you to deduct any dues that are required by your profession, such as bar dues or membership fees to a professional or trade organization, from your taxes. If you are self-employed, you may take the full deduction.
What is threshold limit TDS?
In a scenario where, credit or payment to a contractor under TDS Section 194C is below TDS threshold limit of INR 1,00,000 in aggregate in a financial year and single transaction threshold limit INR 30,000, TDS will not be deducted.22-Jun-2022
u/s 194J(a) of the Income Tax Act, is related to TDS deduction on fees for Technical Services, and u/s 194J(b) of the Income Tax Act is related to TDS deduction on fees for Professional Services.23-Nov-2021
What is 194J A & 194J B?
(i) Section 194J(A) of the Income Tax Act is related to TDS deduction on any sum paying as fees for Technical Services. (ii) Section 194J(B) of the Income Tax Act is related to TDS deduction on any sum paying as fees for Professional Services. 4. Distribution or exhibition of cinematographic films.28-Aug-2021
For instance, if a salaried person has his/her TDS deducted under section 194J (for professional income) along with TDS on salary income under section 192, income in respect of TDS deducted u/s 194J should be shown as income from business/profession and consequently ITR 3 or 4 would have to be filed.06-Aug-2019
What is the TDS rate on professional fees for FY 2021 22?
Rs. 50,00,000.00 5 5 - 20 The threshold Limit of Rs. 50,00,000 payment of commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct 5% TDS by the resident Indians and Domestic Companies respectively.
TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)
Who is eligible for TDS?
The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.
Slabs for Deduction from Employees-
What is the TDS rate 2022 23?
TDS Rate Chart for FY 2022-23
c) Threshold Limit 50,000 during the financial year. iii) In any other case, the said limit is proposed to be Rs. 10,000 during the financial year.05-Feb-2022
How many types of TDS is there?
2 types
Answer : Routine, normal maintenance contracts which includes supply of spares will be covered under section 194C. However, where technical services are rendered, the provision of section 194J will apply in regard to tax deduction at source.
What are examples of professional fees?
What Are Professional Fees. Professional fees refer to the fees charged by a person considered to be a “professional” such as a lawyer, accountant, doctor, engineer, financial planner, appraiser, management consultant, or other.18-Oct-2021
Is TDS applicable on professional fees?