Section 194J (TDS on Professional Fees)

💡 Quick Definition: Income tax section mandating 10% (or 2% for technical services) TDS deduction on professional payments exceeding ₹30,000 annually.

Detailed Explanation & Workplace Application

Companies and MSMEs paying fees to freelance software developers, CAs, legal consultants, and marketing agencies must deduct TDS under Section 194J and remit it to the government using Challan ITNS 281 by the 7th of the following month.

Practical Syntax / Framework Formula

Invoice Amount: ₹50,000 + 18% GST (₹9,000) = ₹59,000
TDS @ 10% on base (₹5,000)
Net Payment to Freelancer = ₹54,000

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