Consultant Doctors Not Employees: TDS to Be Deducted Under Section 194J

CIT Vs Dr. Balabhai Nanavati Hospital (Bombay High Court) Distinguishing Salary from Professional Fees: Lessons from Nanavati Hospital TDS Litigation Summary: The Bombay High Court has upheld the distinction between salary and professional fees in a tax dispute involving Dr. Balabhai Nanavati Hospital. The case, which centered on the appropriate sections for TDS (Tax Deducted at Source), addressed two key issues: the status of consultant doctors and the nature of payments for Annual Maintenance Contracts (AMCs). The Income Tax Department argued that payments to doctors should be taxed as salar...