On what minimum amt can we deduct TDS for consultancy fees?
8th August 2017 From India, Hyderabad

Dear Kainer,

TDS for providing consulting services is covered under Section 194J of IT Act, 1961. If the amount paid exceeds Rs 30,000/- for individual professional and Rs 10,000/- for the company then TDS @ 10% is deducted.

Few companies, deduct TDS even if the amount paid is far lower for individual professional say Rs 5,000/- They do it because they don't have to remember whether amount exceeded Rs 30,000/- or not. However, it increases their monthly work of inclusion of this amount in their monthly return.


Dinesh Divekar
8th August 2017 From India, Bangalore
Dinesh Divekar
Business Mentor, Consultant & Trainer
Bengaluru - 560092 (India)
dineshdivekar(at)yahoo(dot)com - +91-99001-55394
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