Section 194J → Section 217
TDS on Fees for Professional or Technical Services
Quick Answer
Section 194J of the Income Tax Act, 1961 (TDS on Fees for Professional or Technical Services) corresponds to Section 217 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 194J
Provision Summary
TDS @ 10% (Professionals) or 2% (Technical/Royalties/Call Center) on fees exceeding Rs. 30,000.
Sec 217
Provision Summary
Retained. Distinguishes between professional services (10%) and technical services (2%) to reduce litigation.
Key Changes & Highlights
- Royalties and FTS (Fees for Technical Services) rates standardized at 2% to encourage tech adoption.
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Frequently Asked Questions
What does Section 194J of the Income Tax Act 1961 deal with?
Section 194J (TDS on Fees for Professional or Technical Services) TDS @ 10% (Professionals) or 2% (Technical/Royalties/Call Center) on fees exceeding Rs. 30,000.
What is the new section number for Section 194J under the Direct Tax Code 2025?
Section 194J of the ITA 1961 maps to Section 217 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 194J under the new tax code?
Section 194J is marked as "Retained" with status "Active". Impact: Critical - Governs payments to doctors, lawyers, CAs, and IT consultants.
What are the key changes to Section 194J under DTC 2025?
Royalties and FTS (Fees for Technical Services) rates standardized at 2% to encourage tech adoption.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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