194jb: Understand the applicability

Understand the applicability, TDS rates, threshold limits, and compliance rules under Section 194JB of the Income Tax Act for FY 2024–25. Every person excluding an individual or a HUF, making payment to a resident for notified services, will be covered u/s 194J (a) & 194J (b) in the Income Tax Act. Payments that are being covered u/s 194J (a) Payments that are being covered u/s 194J (b) Tax Deduction Rate. Threshold Exemption Limit. Section 194JB was introduced to apply taxes on payments for technical or professional services. It is a part of the existing TDS (Tax Deducted at Source) rules under Section 194 of the Income Tax Act, specifically focusing on royalty and service-based payments. What is Section 194JB? Section 194JB of Income Tax Act requires that any person, excluding individuals and Hindu Undivided Families (HUF) not subject to a tax audit, must deduct Tax Deducted at Source (TDS) when paying fees for professional services.