Complete guide to TDS under Section 194J on professional fees, technical services, royalty, and director remuneration. Understand the 2% vs 10% split rates introduced from FY 2020-21 onwards.
Since Finance Act 2020, Section 194J has two distinct rates. Here's a quick reference:
| Section | Nature of Payment | Threshold (₹) | Individual/HUF (%) | Co./Firm (%) | No PAN (%) |
|---|---|---|---|---|---|
| Section 194J – Professional / Technical Fees (10% Category) | |||||
| 194J | Professional Fees (Doctors, Lawyers, CAs, Architects, Engineers, Consultants) | ₹50,000 | 10% | 10% | 20% |
| 194J | Royalty (other than cinematographic films) | ₹50,000 | 10% | 10% | 20% |
| 194J | Non-compete fees / Exclusivity fees | ₹50,000 | 10% | 10% | 20% |
| 194J | Director – Sitting Fees / Commission (Non-salary) | No Limit | 10% | 10% | 20% |
| Section 194J – Technical Services (2% Category) | |||||
| 194J | Fees for Technical Services (IT, Software support, Engineering services) | ₹50,000 | 2% | 2% | 20% |
| 194J | Call Centre Payments | ₹50,000 | 2% | 2% | 20% |
| 194J | Royalty – Sale / Distribution / Exhibition of Cinematographic Films | ₹50,000 | 2% | 2% | 20% |
All sections. All thresholds. FY 2025-26. Free, no login required.
Section 194J TDS rate for FY 2025-26 is 10% for professional fees and 2% for technical services. TDS on professional fees applies to payments made to doctors, lawyers, CAs, engineers and consultants above ₹50,000 threshold. TDS on technical services 194J is 2% applicable to IT services, software support and call centre payments. The 194J threshold limit is ₹50,000 aggregate per year. TDS on director fees has no threshold and is deducted at 10%. All professional fees TDS rate FY 2025-26 figures are per Finance Act 2025.