TDS Under Section 194J - Professional Fees Calculator
Section 194J: 10% TDS on professional fees (medical, legal, accounting, engineering, architectural, etc.), 2% on technical services. Threshold: Rs 30,000 per year per payee. On paying a CA Rs 1.5 lakh for audit: TDS = 10% x Rs 1.5 lakh = Rs 15,000. Net payment to CA = Rs 1,35,000.
TDS Rate
10%
TDS Amount
₹10,000
Net Payment
₹90,000
Without PAN, TDS is deducted at 20% (Section 206AA). Rates: 194J: 10%, 194I: 10%, 194C: 1-2%, 194A: 10%, 194H: 5%. Salary TDS varies — shown as flat 10% estimate.
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Common questions about TDS Under Section 194J - Professional Fees Calculator
What is the difference between "professional fees" and "technical services" under 194J?
"Professional fees" (10% TDS): doctors, lawyers, CAs, engineers, architects, accountants, interior decorators, film artists. "Technical services" (2% TDS): management consultants, financial consultants, technical advisors, IT services companies. Rate was reduced for technical services from 10% to 2% effective April 2020 to reduce the compliance burden on service companies.
Is TDS applicable on royalty payments?
Yes. Royalty payments to residents are covered under Section 194J at 10% TDS when payment exceeds Rs 30,000. This includes royalties on books, music, films, patents, and franchise fees. Royalties paid to non-residents are covered under Section 195 with rates governed by applicable Double Taxation Avoidance Agreements (DTAA).
When does 194J apply to a freelancer receiving payments?
If you are a freelancer receiving professional fees from companies or businesses, the paying entity deducts 10% TDS on your invoice above Rs 30,000. They credit this TDS to your PAN. You claim this TDS credit when filing ITR. If your total income is below taxable limit, you can submit Form 15G/15H to avoid TDS deduction.