What is Section 194J - TDS on Professional Fees?
Nexa Consultancy | Startup & Finance Glossary
A section of the Indian Income Tax Act that mandates deducting tax at source (TDS) at 10% on payments made for professional or technical services, if the total payment in a year exceeds ₹30,000.
Startup Example: A startup pays a marketing consultant ₹50,000 for their services. The startup must deduct ₹5,000 (10%) as TDS, pay the consultant ₹45,000, and deposit the ₹5,000 with the government.
This is a common compliance item handled by our compliance team.