Did you know that you are required to deduct TDS professional fees ? According to CBDT for the purposes of section 44AA. The services rendered by an individual in the course of carrying on either legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession can be deemed as professional fees. In my answer I will share with you all the details I know about the topic.
When to deduct TDS on professional fees ?
According to the Income Tax Laws of this country, there is a specific section in the act i.e. 194J that talks about TDS on professional charges. TDS on professional fees is to be deducted when the actual payment of the expense is made. The rate of TDS for technical and professional fees is different from the remuneration rate to the director.
Rate of TDS :
For the assessment year 2022-23, TDS rate on professional fees or technical services is 2 %. The threshold limit on fees for professional service is Rs. 30,000. The rate of tax earlier was set at 10%.
For the current financial year, The TDS rate set on the remuneration or fees to Director is 10%.
For some particulars, the recipient of income is required to furnish his PAN card. If the recipient does not furnish his PAN card, then the rate of TDS reduction will change. The new rate of deduction will be@ 20%. You must remember that no extra surcharge or education cess shall be added to the above mentioned rates.
This is the end of my answer about TDS Professional fees.
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When to deduct TDS on professional fees ?
Nirali
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2 Year
2022-01-11T07:38:19+00:00 2022-01-12T10:37:52+00:00Comment
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