Monisha Ponnappa | Bizprout Expert Systems Private limited
TDS u/s 194J: New Threshold Limit for Professional & Technical Services Effective April 1, 2025
18 Feb, 2025
The Finance Act 2025, introduced in Budget 2025, has brought a significant amendment to Section 194J of the Income Tax Act, 1961. The revision raises the TDS deduction threshold on professional and technical service fees from ₹30,000 to ₹50,000. This change will take effect from April 1, 2025, impacting businesses and professionals across multiple industries.
Amendment in Section 194J
Under Section 194J, tax must be deducted at source on specific payments made by any entity (excluding individuals and Hindu Undivided Families) to a resident, including:
- Fees for professional or technical services
- Remuneration, fees, or commission paid to directors (excluding salary under Section 192)
- Royalty payments
- Any sum covered under clause (va) of Section 28
As per Clause (B) of the proviso to sub-section (1) of Section 194J, the threshold for TDS deduction has been revised from ₹30,000 to ₹50,000, effective from April 1, 2025.
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Publisher: Monisha Ponnappa | Bizprout Expert Systems Private limited
