Income Tax Act, 2025
Section 7: Ins. by Act 20 of 2002, s. 78 (w.e.f. 12002).
7. Ins. by Act 20 of 2002, s. 78 (w.e.f. 12002).
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1[Provided also that no individual or a Hindu undivided family referred to in the second
proviso shall be liable to deduct income-tax on the sum by way of fees for professional services
incase such sum is credited or paid exclusively for personal purposes of such individual or any
member of Hindu undivided family:]
2[Provided also that the provisions of this section shall have effect, as if for the words “ten
per cent.”, the words “two per cent.” had been substituted in the case of a payee, engaged only in
the business of operation of call centre.]
3* * * * *
Explanation.—For the purposes of this section,—
(a) “professional services” means services rendered by a person in the course of carrying on legal,
medical, engineering or architectural profession or the profession of accountancy or technical
consultancy or interior decoration or advertising or such other profession as is notified by the Board
for the purposes of section 44AA or of this section;
(b) “fees for technical services” shall have the same meaning as in Explanation 2 to clause (vii) of
sub-section (1) of section 9;
4[(ba) “royalty” shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1)
of section 9;]
(c) where any sum referred to in sub-section (1) is credited to any account, whether called
“suspense account” or by any other name, in the books of account of the person liable to pay such
sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the
provisions of this section shall apply accordingly.
194K. [Income in respect of units.]—Omitted by the Finance Act, 2016 (28 of 2016), s. 80
(w.e.f. 12016).
194L. [Payment of compensation on acquisition of capital asset.]—Omitted by s. 80, ibid.
(w.e.f. 12016).
5[194LA. Payment of compensation on acquisition of certain immovable property.—Any person
responsible for paying to a resident any sum, being in the nature of compensation or the enhanced
compensation or the consideration or the enhanced consideration on account of compulsory acquisition,
under any law for the time being in force, of any immovable property (other than agricultural land), shall,
at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode,
whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax thereon:
“professional services” means services rendered by a person in the course of carrying on legal,
medical, engineering or architectural profession or the profession of accountancy or technical
consultancy or interior decoration or advertising or such other profession as is notified by the Board
for the purposes of section 44AA or of this section;
“fees for technical services” shall have the same meaning as in Explanation 2 to clause
of
sub-section
of section 9;
4[
“royalty” shall have the same meaning as in Explanation 2 to clause
of sub-section
of section 9;]
where any sum referred to in sub-section
is credited to any account, whether called
“suspense account” or by any other name, in the books of account of the person liable to pay such
sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the
provisions of this section shall apply accordingly.
194K. [Income in respect of units.]—Omitted by the Finance Act, 2016 (28 of 2016), s. 80
(w.e.f. 12016).
194L. [Payment of compensation on acquisition of capital asset.]—Omitted by s. 80, ibid.
(w.e.f. 12016).
5[194LA. Payment of compensation on acquisition of certain immovable property.—Any person
responsible for paying to a resident any sum, being in the nature of compensation or the enhanced
compensation or the consideration or the enhanced consideration on account of compulsory acquisition,
under any law for the time being in force, of any immovable property (other than agricultural land), shall,
at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode,
whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax thereon: