(4) 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 or technical services is credited or paid shall be liable to deduct income-tax under this sub-section. Ganesh towards fees for professional services and fees for technical services during the P.Y.2015-16. It is assumed that there is no other payment to Mr. TDS provisions under section 194J would not get attracted, since the limit of Rs 30,000 is applicable for fees for professional services and fees for technical services, separately. Discuss whether TDS provisions under section 194J are attracted. Ganesh on towards fees for professional services and another payment of Rs 25,000 to him on the same date towards fees for technical services. However, there is no such exemption limit for deduction of tax on any remuneration or fees or commission payable to director of a company. It implies that if the payment to a person towards each of the above is less than Rs 30,000, no tax is required to be deducted at source, even though the aggregate payment or credit exceeds Rs 30,000.
The limit of Rs 30,000 under section 194J is applicable separately for fees for professional services, fees for technical services, royalty and non-compete fees referred to in section 28(va). (3) No tax deduction is required if the amount of fees or the aggregate of the amounts of fees credited or paid or likely to be credited or paid during a financial year does not exceed Rs 30,000 in the case of fees for professional services, Rs 30,000 in the case of fees for technical services, Rs 30,000 in the case of royalty and Rs 30,000 in the case of non-compete fees. (2) The deduction is to be made 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. Shall deduct tax at source at the rate of 10%. (v) non-compete fees referred to in section 28(va) (iii) 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
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