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Enhancement Limits for TDS U/s. 194J on professionals to Rs. 1 Lakh: ICAI

It is suggested that the TDS limit for payment of professional or technical fees under section 194J may be increased from Rs. 30000 to Rs. 100000.

Issue/Justification

TDS threshold limits u/s 194J were last revised in 2010. The deduction of tax at source on such small amounts involves deployment of relatively large amount of resources in terms of manpower, systems and other costs at the assessee’s end without any significant benefits to the revenue.

Suggestion

It is suggested that the TDS limit for payment of professional or technical fees under section 194J may be increased from Rs. 30000 to Rs. 100000.

Source-  ICAI Pre- Budget Memorandum–2018 (Direct Taxes and International Tax)
Categories: Income Tax
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