<\/span><\/h2>\nTDS Deduction (FY 2024\u201325)<\/strong><\/p>\n\n- Interest on Deposits (194A): 10%<\/li>\n
- Commission (194H): 5%<\/li>\n
- Rent (194I):\n
\n- 10% (for land\/building)<\/li>\n
- 2% (for plant\/machinery)<\/li>\n<\/ul>\n<\/li>\n
- Professional\/Technical Fees (194J): 10%<\/li>\n
- Job work, labor contract, advertisement, etc. (194C):\n
\n- 1% for Individual\/HUF<\/li>\n
- 2% for others<\/li>\n<\/ul>\n<\/li>\n
- Salary (192B): Slab rates applicable<\/li>\n
- Purchase of Goods (194Q): 0.1% (only if turnover > \u20b910 Cr)<\/li>\n<\/ul>\n
Important Cut-offs: (Applicable till 31-03-2025)<\/strong><\/p>\n\n- Commission: \u20b915,000<\/li>\n
- Rent: \u20b92,40,000<\/li>\n
- Professional Fees: \u20b930,000<\/li>\n
- Job Work: \u20b930,000 per single bill or \u20b91 lakh aggregate<\/li>\n<\/ul>\n
TCS Collection (FY 2024\u201325)<\/strong><\/p>\n\n- On Scrap Sales (206C): 1%<\/li>\n
- On Sale of Goods (> \u20b910 Cr turnover) (206C(1H)): 0.1%\n
\n- Note: TCS on sale of goods is removed from 01-04-2025.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Payment Due Date:<\/strong><\/p>\n\n- TDS\/TCS to be deposited by 7th of the next month<\/li>\n
- For March, deposit by 30th April.<\/li>\n<\/ul>\n
TDS Deduction (FY 2025\u201326)<\/strong><\/p>\n\n- Rates are same as FY 24-25 except a few changes in limits:\n
\n- Commission: \u20b920,000<\/li>\n
- Professional Fees\/Technical Charges: \u20b950,000 (each)<\/li>\n<\/ul>\n<\/li>\n
- New Addition:\n
\n- Partner Interest and Remuneration (194O): 10% (for Firms\/LLPs)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
TCS Collection (FY 2025\u201326)<\/strong><\/p>\n\n- On Scrap Sales (206C): 1% (no change)<\/li>\n
- On Sale of Goods (206C(1H)): Removed from 01-04-2025.<\/li>\n<\/ul>\n
<\/span>Section 194J \u2013 TDS on Professional & Technical Payments<\/strong><\/span><\/span><\/h2>\n![\"TDS](\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/04\/194J.-.jpeg\")
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<\/span>Nature of Payments Covered under section 194J<\/strong><\/span><\/span><\/h3>\n\n- Professional fees (legal, medical, engineering, accounting, consultancy, etc.)<\/li>\n
- Fees for technical services (other than professional services)<\/li>\n
- Royalty<\/li>\n
- Director\u2019s fees\/remuneration<\/li>\n
- Non-compete fees<\/li>\n<\/ul>\n
<\/span>TDS Rates <\/strong><\/span>under section 194J<\/strong><\/span><\/span><\/h3>\n\n
\n\n\n| Nature of Payment<\/th>\n | Rate<\/th>\n<\/tr>\n |
\n| Professional fees<\/td>\n | 10%<\/td>\n<\/tr>\n |
\n| Director\u2019s fees\/remuneration<\/td>\n | 10%<\/td>\n<\/tr>\n |
\n| Non-compete fees<\/td>\n | 10%<\/td>\n<\/tr>\n |
\n| Fees for technical services (other than professional)<\/td>\n | 2%<\/td>\n<\/tr>\n |
\n| Royalty (other than cinematographic film royalty)<\/td>\n | 10%<\/td>\n<\/tr>\n |
\n| Royalty for sale\/distribution\/exhibition of films<\/td>\n | 2%<\/td>\n<\/tr>\n |
\n| PAN not furnished (Sec 206AA)<\/td>\n | 20%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/span>Threshold <\/strong>under section 194J<\/strong><\/span><\/span><\/h3>\n\n- \u20b950,000 per financial year per payee<\/li>\n
- Not applicable to Director\u2019s fees (TDS from first rupee)<\/li>\n<\/ul>\n
<\/span>Who Must Deduct section 194J?\u00a0<\/strong><\/span><\/span><\/h3>\n\n- Company \/ Firm \/ LLP \/ Trust \/ Business Entity<\/li>\n
- Individual \/ HUF only if:\n
\n- Business turnover > \u20b91 crore, or<\/li>\n
- Professional receipts > \u20b950 lakh (preceding FY \u2013 Sec 44AB)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
<\/span>Timing of section 194J<\/strong><\/span><\/span><\/h3>\n\n- Deduct at earlier of credit or payment, including year-end provisions.<\/li>\n<\/ul>\n
<\/span>Deposit & Reporting under section 194J<\/strong><\/span><\/span><\/h3>\n\n- Deposit: By 7th of next month<\/li>\n
- Return: Form 26Q<\/li>\n
- Certificate: Form 16A<\/li>\n
- Credit reflected in Form 26AS \/ AIS<\/li>\n
- Review agreements to classify professional vs technical services correctly.<\/li>\n
- Director\u2019s sitting fees & commission always attract TDS.<\/li>\n
- Year-end provisions without TDS \u2192 high risk of notices & disallowance<\/li>\n<\/ul>\n
<\/span>Consequences of Non-Compliance under section 194J<\/strong><\/span><\/span><\/h3>\n\n- Interest u\/s 201(1A):\n
\n- 1% per month\u2014for non-deduction<\/li>\n
- 1.5% per month \u2013 for non-payment after deduction<\/li>\n<\/ul>\n<\/li>\n
- Expense Disallowance u\/s 40(a)(ia):\n
\n- 30% of expenditure disallowed if TDS not deducted\/deposited<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
<\/span>TDS Rate Chart for FY 2025-26<\/span><\/span><\/h2>\n![\"TDS](\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/04\/TDS-rate.jpeg\") <\/p>\n
Key TDS Sections Updates \u2013 Effective April 2026 – <\/strong>Section 392 & Section 393(1) Summary<\/strong><\/span><\/p>\n<\/span>Section 392 \u2013 Salary<\/strong><\/span><\/span><\/h3>\n\n\n\nNew Section<\/strong><\/td>\nCode<\/strong><\/td>\nNature of Payment<\/strong><\/td>\nOld Section<\/strong><\/td>\nRate<\/strong><\/td>\nThreshold<\/strong><\/td>\n<\/tr>\n\n392<\/strong><\/td>\n1001<\/strong><\/td>\nSalary \u2013 State\/Local Government Employees<\/strong><\/td>\n192<\/strong><\/td>\nAs per slab<\/strong><\/td>\nBasic Exemption<\/strong><\/td>\n<\/tr>\n\n392<\/strong><\/td>\n1002<\/strong><\/td>\nSalary \u2013 Private\/Other Employees<\/strong><\/td>\n192<\/strong><\/td>\nAs per slab<\/strong><\/td>\nBasic Exemption<\/strong><\/td>\n<\/tr>\n\n392<\/strong><\/td>\n1003<\/strong><\/td>\nSalary \u2013 Central Government Employees<\/strong><\/td>\n192<\/strong><\/td>\nAs per slab<\/strong><\/td>\nBasic Exemption<\/strong><\/td>\n<\/tr>\n\n392(7)<\/strong><\/td>\n1004<\/strong><\/td>\nPF Withdrawal (Accumulated Balance)<\/strong><\/td>\n192A<\/strong><\/td>\n10%<\/strong><\/td>\nINR 50,000<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/span>\u00a0<\/strong>Section 393(1) \u2013 Interest & Dividends<\/strong><\/span><\/span><\/h3>\n\n\n\nTDS Code<\/strong><\/td>\nCode<\/strong><\/td>\nNature of Payment<\/strong><\/td>\nOld Section<\/strong><\/td>\nRate<\/strong><\/td>\nThreshold<\/strong><\/td>\n<\/tr>\n\n393(1) [TSI.5(i)]<\/strong><\/td>\n1005<\/strong><\/td>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
![\"TDS](\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/05\/TDS-TCS-RATE-CHART.jpg\")
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