Section 194JCentral Act

Section 194J: [ Fees for professional or technical services. [Inserted by Act 22 of 1995, Section 36 (w.e.f. 1.7.1995).]

The Income-tax Act, 1961

[ Fees for professional or technical services. [Inserted by Act 22 of 1995, Section 36 (w.e.f. 1.7.1995).]

(1)

Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of-

(a)

fees for professional services, or

(b)

fees for technical services, ][or [ Inserted by Act 29 of 2006, Section 16 (w.e.f. 13.7.2006).]

(c)

royalty, or

(d)

any sum referred to in clause (va) of section 28,]

[shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ] [Inserted by Act 22 of 1995, Section 36 (w.e.f. 1.7.1995).][ten per cent.] [ Substituted by Act 22 of 2007, Section 57, for " five per cent." (w.e.f. 1.6.2007).][of such sum as income-tax on income comprised therein:Provided that no deduction shall be made under this section-

(A)

from any sums as aforesaid credited or paid before the 1st day of July, 1995; or

(B)

where the amount of such sum or, as the case may be, the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed-

(i)twenty thousand rupees, in the case of fees for professional services referred to in clause (a), or

(ii)twenty thousand rupees, in the case of fees for technical services referred to in ][clause (b), or] [ Substituted by Act 29 of 2006, Section 16, for " clause (b):" (w.e.f. 13.7.2006).]

(iii)[ twenty thousand rupees, in the case of royalty referred to in clause (c), or [Inserted by Act 29 of 2006, Section 16 (w.e.f. 13.7.2006).]

(iv)twenty thousand rupees, in the case of sum referred to in clause (d):]

[Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44-AB during the financial year immediately preceding the financial year in which such sum by way of fees for professional services or technical services is credited or paid, shall be liable to deduct income-tax under this section:] [ Inserted by Act 20 of 2002, Section 78 (w.e.f. 1.6.2002).][Provided also that no individual or a Hindu undivided family referred to in the second proviso shall be liable to deduct income-tax on the sum by way of fees for professional services in case such sum is credited or paid exclusively for personal purposes of such individual or any member of Hindu undivided family.] [ Inserted by Act 32 of 2003, Section 78 (w.e.f. 1.6.2003).]

(2)

[* * *] [ Sub-Sections (2) and (3) omitted by Act 32 of 2003, Section 78 (w.e.f. 1.6.2003).]

(3)

[* * *] [ Sub-Sections (2) and (3) omitted by Act 32 of 2003, Section 78 (w.e.f. 1.6.2003).][Explanation. - For the purposes of this section,-

(a)

"professional services" means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44-AA or of this section;

(b)

"fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;]

(ba)[ "royalty" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;] [ Inserted by Act 29 of 2006, Section 16 (w.e.f. 13.7.2006).]

(c)

[ where any sum referred to in sub-section (1) is credited to any account, whether called "Suspense Account" or by any other name, in the books of account of the person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the provisions of this section shall apply accordingly.] [Inserted by Act 22 of 1995, Section 36 (w.e.f. 1.7.1995).]

Sec 194IC — Payment under specified agreement

Sec 194K — [ Income in respect of units. [Substituted by Act 20 of 2002, Section 79, for Section 194-K (w.e.f. 1.6.2002).]

Disclaimer: This section is reproduced for general informational and reference purposes only. Always verify against the latest official gazette and consult a qualified advocate before relying on any provision.