The rise in the TDS limit under Section 194J starting from FY 2025-26 is a positive development for small professionals and businesses, as it lessens the compliance burden and enhances cash flow. Section 194J refers to TDS provisions relating to specific services. It requires anybody who pays fees to a resident for such defined services such as professional or technical services to deduct TDS . An individual should deduct TDS at the rate of 10% when the following payments are made to a resident, in a fiscal year (higher than Rs.30,000): TDS under Section 194J is generally required to be deducted if the payment for professional or technical services exceeds a specific limit in a financial year: ₹30,000: For fees for professional services and technical services. (Note: This threshold is changing to ₹50,000 annually from April 1, 2025). " The rate of TDS shall be increased by applicable surcharge and Health & Education cess.
