# Section 194J — TDS on Professional & Technical Fees
## Rate Structure (Recap)
| Nature of Payment | Rate |
|---|---|
| Professional services (general) | 10% |
| Fees for Technical Services (FTS), non-professional, call centres, royalty on cinematographic films | 2% |
## Threshold
₹30,000 per type of payment per year — and the limit is checked separately for each category (FPS, FTS, Royalty, Non-Compete fees).
## Specific Scenarios
### 1. Event Management Services
- Event managers for SPORTS activities — notified by CBDT as 'professional service' → TDS u/s 194J applies.
- Event managers for OTHER events — TDS u/s 194C applies (not 194J).
### 2. Horse Race Bookmaking
- A bookmaker paying winnings to a punter from a horse race → TDS u/s 194BB is deducted on the gross winnings, without setting off losses, before TDS.
### 3. Third Party Administrators (TPA) — Health Insurance
- Payments by TPAs to hospitals for cashless treatment → TDS deductible u/s 194J.
### 4. Exemption for Individuals & HUFs
Individuals & HUFs NOT carrying on a business / profession (or whose turnover / gross receipts in preceding PY did not exceed the limit) are NOT required to deduct TDS u/s 194J on:
- Royalty
- Non-compete fees
### 5. Threshold Checked Separately for Each Category
Example: FTS paid = ₹45,000 and FPS paid = ₹48,000.
- Each is under the ₹50,000 limit (assuming relevant threshold) when checked separately.
- TDS u/s 194J is NOT applicable — limit is checked category-wise, not in aggregate.
### 6. Software Acquired from Resident — TDS NOT Required if ALL Conditions Met
TDS u/s 194J is not attracted on acquisition of software from a resident transferor if all of the following are satisfied:
1. Software is acquired in a subsequent transfer without any modification
2. TDS has been deducted on the previous transfer (by an earlier purchaser)
3. The transferee obtains a declaration from the transferor that tax has also been deducted, along with PAN of the transferor