You must have always wondered that how much money does a Doctor or a CA or a Lawyer earns? Must be in double-figure of lacs (after all they are counted as one of the most reputed professions).
Today we’ll tell how provisions of tax deduction (TDS) becomes applicable to them and this brings us to the Section 194J.
As this provision of TDS hits millions of people around India, hence it needs proper as well as in-depth discussion as follows:
As per this section, any person (but not an individual or HUF) who pays to a resident the following types of income, will be required to deduct tax at source u/s 194J.
However, individual or HUF will be required to deduct TDS if they are liable to audit u/s 44AB (a) and (b).
The rate of tax deduction u/s 194J is 10%. But in case the payee (i.e. the receiver) is in the business of running only call center then TDS rate will be 2%. And the time of deduction is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft or other modes).
Ans. Yes, TDS deducted can be claimed as refund after considering all his income. ITR Form 3 or 4 can be filed accordingly.
Ans. ITR Form4 can be used if 194J receipt is less than Rs. 50 lakhs otherwise ITR 3.
Ans. It mainly depends on whether there is employer- employee exists or not.
Ans. It would be covered under 194J, if assignment bill exceeds Rs. 30000/- p.a.but in above case total is only Rs. 20000/- so no TDS liability.
Ans. No, it’s not compulsory to mention assets while filing ITR.
Ans. It can checked by Login into Traces and View your 26AS.
Ans. ITR 3 or 4 is appropriate to be used as 194J related to professional and technical.
Ans. ITR-1 can be filed if any professional services is rendered is not the business of the assessee and it has been rendered casually.
Ans. No, stipend does not comes under professional tax. It may come under 192 once few conditions satisfied.
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