# Section 194J — TDS on Professional Fees, Technical Services, Royalty, Etc.

## Who deducts?

Payer: Any person except Individual / HUF below 44AB limits (turnover ≤ ₹1 cr / receipts ≤ ₹50 L).
Payee: Resident.

## Payments covered

## Threshold

₹50,000 p.a. for each category separately.

Exception: No threshold for director's remuneration.

## Rate

Category	Rate
Professional fees (general)	10%
Fees for technical services	2%
Royalty for sale/distribution/exhibition of cinematographic film	2%
Operations of call centre	2%
Director's remuneration (other than salary)	10%
Others (default)	10%

Worked example

### Example 1

Example: Co. pays a CA ₹60,000 for professional services. TDS @ 10% = ₹6,000.

### Example 2

Example: Co. pays a tech firm ₹3,00,000 for technical services. TDS @ 2% = ₹6,000.

### Example 3

Example: Co. pays sitting fees of ₹15,000 to a director. TDS = 10% of ₹15,000 = ₹1,500 (no threshold for directors).

### Example 4

Example: Call centre operator paid ₹2,00,000 — TDS @ 2% = ₹4,000.

⚠️ Common exam mistakes

Applying 10% on technical services / call-centre / film royalty (correct rate is 2%).
Applying ₹50,000 threshold to director's sitting fees — there is no threshold for director's remuneration.
Aggregating fees and FTS to compute threshold — each category has its own ₹50,000 limit.

Reference: 194J

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Section 194J — Professional / Technical Fees, Royalty, Director Remuneration

Worked example