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TDS on Professional Fees (Section 194J)

Fees for professional services such as legal, medical, accounting, architecture and consultancy attract 10% TDS under Section 194J once they cross ₹50,000 in the year. Fees for technical services and call-centre work attract 2%. Fees paid to a director other than salary attract 10% from the first rupee.

Quick answer (FY 2025-26 and FY 2026-27)

TDS rate
10% / 2%
Threshold
₹50,000 a year per category

TDS on professional fees: rate chart

Payment Section (1961 Act) New section (2025 Act) Rate Threshold
Professional fees (legal, medical, CA, architect, consultant, designer) 194J 393(1), Sl. No. 6(iii) 10% ₹50,000 a year
Fees for technical services, call-centre operations 194J 393(1), Sl. No. 6(iii) 2% ₹50,000 a year
Director fees or commission (not salary) 194J 393(1), Sl. No. 6(iii) 10% No threshold
Professional fees paid by an individual or HUF not under audit 194M 393(1) 2% ₹50 lakh a year

10% or 2%: professional versus technical

Professional services are those of notified professions: legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, advertising and similar. These attract 10%.

Fees for technical services (managerial, technical or consultancy services not rendered as a profession) and call-centre operations attract 2%. Royalty for films is also 2%; other royalty and non-compete fees are 10%.

Threshold and GST

The threshold is ₹50,000 a year for each category, raised from ₹30,000 on 1 April 2025. Once crossed, TDS applies to the full amount for the year. Where GST is shown separately on the invoice, TDS is on the fee excluding GST.

Freelancers and consultants receiving fees from companies see this TDS in Form 26AS and claim it in their return.

TDS on professional fees calculator

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Frequently Asked Questions

What is the TDS rate on professional fees?
10% under Section 194J. Fees for technical services and call-centre operations are at 2%.
What is the TDS limit on professional fees?
₹50,000 a year for each category, from 1 April 2025. It was ₹30,000 before.
Is TDS deducted on director sitting fees?
Yes, at 10% from the first rupee. There is no threshold for fees or commission paid to directors.
Does an individual paying a doctor or lawyer deduct TDS?
Not for personal purposes. Individuals not under audit deduct only under 194M, at 2% when total contract, commission and professional payments exceed ₹50 lakh in the year.
Is TDS on professional fees deducted on GST?
No, if GST is shown separately; TDS is on the fee excluding GST.
What is the new section for 194J?
From 1 April 2026 it is Section 393(1), Table Sl. No. 6(iii) of the Income-tax Act, 2025.
What is the due date for depositing TDS on professional fees?
By the 7th of the following month. For tax deducted in March, the due date is 30 April. Tax deducted under 194-IB by individual tenants is paid with Form 26QC within 30 days from the end of the month of deduction.
What happens if TDS on professional fees is not deducted or deposited on time?
Interest is charged at 1% a month (or part of a month) from the date TDS was deductible until it is deducted, and 1.5% a month from deduction until deposit. Late filing fees, penalties and disallowance of the expense can also apply.
Which TDS return and certificate apply to TDS on professional fees?
Deductors with a TAN file a quarterly return in Form 26Q (Form 27Q for payments to non-residents) and issue Form 16A to the payee each quarter. Individual tenants under 194-IB use Form 26QC and issue Form 16C.
How can the payee check the TDS deducted?
In Form 26AS and the Annual Information Statement (AIS) on the income tax portal. The TDS is then claimed as a credit against tax in the income tax return, and any excess is refunded.
Did the Income-tax Act 2025 change TDS rates from April 2026?
No. From 1 April 2026 the new Act renumbered the provisions (TDS is mainly in Sections 392 and 393), but the rates and thresholds carried over. Returns and challans for payments from that date use the new section references.

New section references are to the Income-tax Act, 2025, in force from 1 April 2026. Verify the table serial number against the official text before quoting it in a return or notice reply.

Section-wise details

Section 194J
Professional & Technical Fees

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