Case laws on section 194j of income tax act 1961

As per section 194j, of the income tax act, 1961 fees for professional or technical services. As such, tds has to be deducted by the person responsible. Jan 11, 2016 sldc charges are not fees for technical services and not withholding of tax in terms of s. Given income tax act sections list includes revised, omitted and newly added tax rules. Sep 21, 2019 article discusses about tax deducted at source from interest other than interest on securities section 194a, from fees for professional servicestechnical servicesroyalty section 194j and from interest on securities section 193 for quick and efficient collection of taxes, the income tax law has incorporated a system of deduction of tax. Section 194j tds on professionaltechnical fees last updated. Analysis of section 194c6 of the income tax act, 1961 w. Section 194j tds on fees for professional or technical services. Tds on testing and commissioning services deductible us 194c. Since the payment made by the taxpayer is in kind, the provisions of. Accordingly these can be carried forward indefinitely. Section 203a income tax act, 1961 laws and bare acts of.

Apr 28, 2020 changes in tds provisions under section 194j finance act 2020 has introduced certain changes in tds section 194j of the income tax act in addition to amendments proposed by the finance bill, 2020. Professional fees charged by film artists from advertising agencies. Section 194j of the income tax act simplifying tax laws. Section 194j fees for professional or technical services incometax act, 1961. Appellate tribunal benami property transactions supreme court of india income tax appellate tribunal authority for. It is in short the ultimate document when it comes to understanding income tax in india. Cbdt circular on section 194j of the incometax act, 1961. Get recent case laws on transfer pricing, guidelines, ongoing tp litigations in india and abroad, landmark judgments on transfer pricing, transfer pricing case study, etc. According to the rules and regulations of section 194j of the income tax act, 1961, a person must deduct their tax deducted at. The appellant assessee was aggrieved by the order of cita in confirming that the tds at the rate of 10% under section 194j of the income tax act 1961 the act is required to be deducted on the services of testing and commissioning services.

The tds rate for the payment other professional services except that for technical services remains same at 10%. On the facts and in the circumstances of the case, the learned commissioner of income tax appeals erred in law and on facts. Cbdt circular on section 190, 194c and 194j of the incometax. Latest income tax act sections list has been provided for finance people. The present article features the amendment to tds section 194j of the incometax act, 1961 by the finance act, 2020 as per the proposed amendment to tds section 194j, tds on fees for technical services other than professional services is reduced from 10% to 2% with effect from 1st april, 2020. Cbdt circular on section 194j of the incometax act, 1961 deduction of tax at source fees for professional or technical services clarification regarding tds under chapter xviib on service tax component comprised of payments made to residents amendment in circular no. Summary of sections income tax act 1961 is available for download at the excellent download file is in the format of pdf. Dec 16, 2009 section 194 j an overview effective 1. Section 203a income tax act, 1961 laws and bare acts. Act, 1961 the act, dealing with deduction of tax at. Before the changes or amendments in section 194j by finance act, 2020 is discussed, it is imperative to discuss the existing provisions of section 194j of the income tax act, 1961. Every person, except an individual or a huf, making payment to a resident for notified services is covered under section 194j of the income tax act.

Section 194h of the income tax act, 1961, is basically concerned with the income tax that is in turn levied on the income which has been earned by means of commission or brokerage. Section 194j under tds for technicalprofessional services fees. Income tax of india, 1961 is the governing legal act in respect of levy, collection, administration and recovery of direct taxes in india. Income tax act 1961 section 194j judgments legalcrystal. Section 194j tds on fees for professional or technical. Published on february 23, 2016 february 23, 2016 12 likes 5 comments. What is payment of compensation on acquisition of certain immovable property.

The government vide finance act no 2 2019, recently introduced section 194m in the incometax act, 1961 from september 1, 2019. Text of remaining provisions of allied acts referred to in incometax act 1. All about section 194 o of income tax act 1961 finance act 2020 introduces a new section 194o for deducting the tds of ecommerce participants. Section 92c, read with section 92b of the income tax act, 1961. Till 31st march, 2020, the tds rate applicable to both fees for professional services and. Section 194i, read with sections 9 and 194j, of the income tax act, 1961 deduction of tax at source rent lease line charges assessment year 2012 assesseecompany made payment of internet. Section 194ld of income tax act income by way of interest on. Section 176 of income tax act discontinued business. Section 80c of incometax act, 1961amended by finance act, 2016 deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. However the section covers the following categories. Be it enacted by parliament in the twelfth year of the republic of india as follows.

Section 194ld of income tax act income by way of interest. Section 194j of the income tax act, 1961 indian act law. Section 194m is applicable from september 1, 2019 an individualhuf is required to deduct tax under section 194m. The appellant assessee was a company engaged in the business of generation of. Section 194j faqs tds on professional or technical services fees. Briefly, the facts of the case are that the assessee challenged the. The high court noted the following provisions of the tax legislation. Finance bill, 2020 has introduced one more rate of two per cent for fees for technical. Section 194i, read with sections 9 and 194j, of the incometax act, 1961 deduction of tax at source rent lease line charges assessment year 2012 assesseecompany made payment of internet. Section 194j tds on professional or technical fees taxadda.

Any person responsible for making any payment to a resident contractor for a contact to carry out any work or in connection to a contact for carrying out any work has to deduct tds under section 194c of income tax act, 1961 section 194c is also applicable to a sub contractor and any contractor supplying labour to carry out any work. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. Also, check amendments of tds section 194j due to finance bill 2020 with general queries. Section 1 of the income tax act, 1961 gives power to tax authorities to issue summons or to force attendance of any person for being examined on oath or to compel production of books of account and other documents if any proceeding is pending. Tds will be deducted under section 194j at rate 2% in case of fees. Download the list of sections of income tax act,1961 in pdf and excel format. It lays down all the rules and regulations in respect of direct taxes in india. Proposed amendment us 194j would reduce litigation and not. What is fees for professional or technical services. The tax to be deducted is one per cent on the gross amount of such sales or service or both.

Apr 11, 2020 the present article features the amendment to tds section 194j of the income tax act, 1961 by the finance act, 2020 as per the proposed amendment to tds section 194j, tds on fees for technical services other than professional services is reduced from 10% to 2% with effect from 1st april, 2020. As per the provisions of section 194j of income tax act 1961, any person other than. In the case at hand, the high court held that payments for uplinking and. Section 194j fees for professional or technical services. Section 194j, incometax act, 19612014 income tax department. Set off carry forward of losses under income tax act,1961. Section 176 and 177 of income tax act 1961 discontinued business and association dissolved or business discontinued are defined under section 176 and 177 of income tax act 1961.

Changes in tds provisions under section 194j finance act 2020 has introduced certain changes in tds section 194j of the income tax act in addition to amendments proposed by the finance bill, 2020. Tds on testing and commissioning services deductible us. Section 194m levy tds at the rate of 5% on the sum paid or credited in a year on account of contractual work including supply of labour for carrying out any work or professional fees by an individual huf other. Students taking ca intermediate ca ipcc exams or students preparing for taxation will find the file very useful. As per the provisions of section 194j of income tax act 1961, any person other than individual or huf shall be liable to deduct tds at 10%, if any sum exceeding inr 30,000 is paid by way of. Tds on contracts section 194c of income tax act, 1961 last updated on february 29, 2016 by editorial staff any person responsible for making any payment to a resident contractor for a contact to carry out any work or in connection to a contact for carrying out any work has to deduct tds under section 194c of income tax act, 1961. Sldc charges are not fees for technical services and not withholding of tax in terms of s. Tds on immovable property us 194ia of income tax act,1961.

The depreciation can be carried forward even if return is not filled in time. Section 194a of income tax act, tds under section 194a. Section 204 of the income tax act, 1961 indian act law. Section 92c of the incometax act, 1961, read with rule 10b of the. Prior to the amendment proposed in the finance bill, 2020 there was only one rate of tds of 10 per cent. Tds deduction is also applicable under section 194j on certain specific cases, decided by the case laws and circulars of the department. Section 1 of the income tax act, 1961 an overall view. The word ooks is defined under the section 2 12 of the income tax act, 1961. Tds on contracts section 194c of income tax act, 1961.

The calcutta high court noted the following various provisions of the tax law. Section page contents division one 111 incometax act, 1961 page u arrangement of sections i3 u text of the incometax act, 1961 as amended by the finance act, 2011 1. Section 194j of the income tax act, 1961 indian act. Appellate tribunal benami property transactions foreign court supreme court income tax appellate tribunal authority for advance ruling high court. For the purposes of sections 192 to 194, section 194a, section 194b, section 194bb, section 194c, section 194d, section 194e, section 194ee, section 194f, section 194g, section 194h, section 194i, section 194j and section 194k, 194l sections 195 to 203 and section 285, the expression person responsible for. Section 194h, read with section 194j, of the incometax act, 1961.

Mar 01, 2018 the appellant assessee was aggrieved by the order of cita in confirming that the tds at the rate of 10% under section 194j of the income tax act 1961 the act is required to be deducted on the services of testing and commissioning services. It is one of the rules of language used by court to interpret legislation. The existence of the books is the foremost condition under this act. Section 194j tds on professional fees or technical services. Income tax finance act 2020 tds under section 194j fa 2020 has. The excellent download file is in the format of pdf. Cbdt circular on section 190, 194c and 194j of the income. Tds section 194j of the income tax act 1961 get to know complete. Persona and hindu undivided family huf are obligated to this.

Section 80c of incometax act, 1961 taxindiaupdates in. Section 176 of income tax act discontinued business section 176. Income tax case laws section wise containing decisions of supreme court, high court, tribaul, cestat, cegat, aar, advance ruling authority etc. Income tax act 1961 section 156 judgments legalcrystal. What is payment of compensation on acquisition of capital asset. What is the new tds section 194m of the income tax act. Budget 2020 reduced the rate for tax deducted at source tds in case of fees for technical services under section 194j of the income tax act 1961 to two percent from the existing 10 percent from april 1, 2020. List of sections of income tax act 1961 finance updates. All about section 194m of income tax act, 1961 taxfront. The present article features the tds provisions contained under section 194j of the income tax act, 1961 relating to the tds deduction on fees for professional or technical services. Section 204 income tax act, 1961 laws and bare acts of. Section 194m is applicable in respect of payment by individualhuf for personal use. X x x x extracts x x x x or paying the sum referred to in subsection 1 shall, until such certificate is cancelled by the assessing officer, deduct incometax at the rates specified in such certificate or deduct no tax, as the case may be.

Section 194j provides for deduction of income tax at source tds in respect of payments made to any resident any sum by way of the following at the specified rates. Cbi 1998 3 where any sum is found credited in the book of an assessee maintained for any. Article discusses about tax deducted at source from interest other than interest on securities section194a, from fees for professional servicestechnical servicesroyalty section194j and from interest on securities section 193 for quick and efficient collection of taxes, the incometax law has incorporated a system of deduction of tax. Carry forward and set off of losses of capital gains. Section 206aa has been amended to provide that in a case where tax is liable to be deducted under section 194o, and the participant does not furnish his pan or aadhar number, the increased rate for deduction of tax is limited to 5% in place of 20%. Tds deduction is also applicable under section 194j on certain specific cases, decided by the case laws and.