Section 194J of income tax act TDS rate for fees professional/ technical services is 2% and royalty is 10%. The limit of payment is Rs 30000 The standard TDS rate is 10%, but a lower rate of 2% applies to fees for technical services (excluding professional services) and royalty for cinematographic films, as well as payments to call centres. TDS under Section 194J is generally required to be deducted if the payment for professional or technical services exceeds a specific limit in a financial year: ₹30,000: For fees for professional services and technical services. (Note: This threshold is changing to ₹50,000 annually from April 1, 2025). The existing section code 194J (i.e. Fees for Professional or Technical Services) has been sub-divided now into two sections, 194J (a) and 194J (b), effective from 7th August 2020. 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. Every person excluding an individual or a HUF, making payment to a resident for notified services, will be covered u ...
