Income Tax Act, 2025
Section 3: Ins. by s. 65, ibid. (w.e.f. 12017).
3. Ins. by s. 65, ibid. (w.e.f. 12017).
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1[194J. Fees for professional or technical services.—(1) Any person, not being an individual or a
Hindu undivided family, who is responsible for paying to a resident any sum by way of—
(a) fees for professional services, or
(b) fees for technical services, 2[or]
3[(ba) any remuneration or fees or commission by whatever name called, other than those on
which tax is deductible under section 192, to a director of a company, or]
2[(c) royalty, or
(d) any sum referred to in clause (va) of section 28,]
shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in
cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal
to 4[ten per cent.] of such sum as income-tax on income comprised therein:
Provided that no deduction shall be made under this section—
(A) from any sums as aforesaid credited or paid before the 1st day of July, 1995; or
(B) where the amount of such sum or, as the case may be, the aggregate of the amounts of such
sums credited or paid or likely to be credited or paid during the financial year by the aforesaid person
to the account of, or to, the payee, does not exceed—
(i) 5[thirty thousand rupees], in the case of fees for professional services referred to in clause
(a), or
(ii) 5[thirty thousand rupees], in the case of fees for technical services referred to in6[clause
(b), or]
2[(iii) 5[thirty thousand rupees], in the case of royalty referred to in clause (c), or
(iv) 5[thirty thousand rupees], in the case of sum referred to in clause (d):]
7[Provided further that an individual or a Hindu undivided family, whose total sales, gross
receipts or turnover from the business or profession carried on by him exceed the monetary limits
specified under clause (a) or clause (b) of section 44AB during the financial year immediately
preceding the financial year in which such sum by way of fees for professional services or
technical services is credited or paid, shall be liable to deduct income-tax under this section:]
Any person, not being an individual or a
Hindu undivided family, who is responsible for paying to a resident any sum by way of—
fees for professional services, or
fees for technical services, 2[or]
3[
any remuneration or fees or commission by whatever name called, other than those on
which tax is deductible under section 192, to a director of a company, or]
2[
royalty, or
any sum referred to in clause
of section 28,]
shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in
cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal
to 4[ten per cent.] of such sum as income-tax on income comprised therein:
Provided that no deduction shall be made under this section—
from any sums as aforesaid credited or paid before the 1st day of July, 1995; or
where the amount of such sum or, as the case may be, the aggregate of the amounts of such
sums credited or paid or likely to be credited or paid during the financial year by the aforesaid person
to the account of, or to, the payee, does not exceed—
5[thirty thousand rupees], in the case of fees for professional services referred to in clause
5[thirty thousand rupees], in the case of fees for technical services referred to in6[clause
5[thirty thousand rupees], in the case of royalty referred to in clause
5[thirty thousand rupees], in the case of sum referred to in clause
or clause
of section 44AB during the financial year immediately
preceding the financial year in which such sum by way of fees for professional services or
technical services is credited or paid, shall be liable to deduct income-tax under this section:]