Section 194JB of the Income Tax Act mandates tax deduction at source (TDS) on payments made to professionals or technical service providers. Individuals or Hindu Undivided Families (HUFs) not subject to tax audits must deduct 10% of TDS if payments exceed ₹50,000 in a financial year. This provision ensures compliance with tax obligations and helps prevent tax evasion, promoting transparency in payments for professional services. In this blog, we will explore the key aspects of this ... Section 194JB of Income Tax Act Section 194JB of the Income Tax Act requires any person—except individuals and Hindu Undivided Families (HUFs) not liable for a tax audit—to deduct Tax Deducted at Source (TDS) when making payments for professional services. The TDS must be deducted at the prescribed rate set by the government. What is Section 194JB? Section 194JB of Income Tax Act requires that any person, excluding individuals and Hindu Undivided Families (HUF) not subject to a tax audit, must deduct Tax Deducted at Source (TDS) when paying fees for professional services. Learn everything about Section 194JB of the Income Tax Act, including TDS on professional services, payments to mutual funds, technical consultancy fees, and non-compete payments. Understand who should deduct TDS, when, how much, and under what conditions, with clear examples and the latest compliance rules.
