apllicability of 194 J of Incometax

[sid chakravarthy]

sir,

We have recruited 2 legal advisors on outsourcing through third party contractors @ Rs 15000.00 per month per person.

i have deducted TDS @10% under Section 194 J of Income Tax Act, 1961

But they are arguing that they do not have much income and as such they do not come under the Income Tax perview.

They said ,they will give a declaration to the effect that they dont have taxable income and hence request to exempt from recovering TDS under Section 194 J.

Can i exempt them from recovering TDS by taking a declaration from them .

Kindly suggest rule position.

Chakravarthy S.N.

AI Summary

Section 194J: TDS Deduction Mandatory for Legal Advisors; Declaration Alone Insufficient for Exemption Without Tax Dept Certificate. A user inquired about the applicability of Section 194J of the Income Tax Act, 1961, regarding TDS deductions for two outsourced legal advisors paid Rs 15,000 monthly. The advisors argued they do not have taxable income and requested exemption from TDS, offering to provide a declaration. The response clarified that the company cannot exempt TDS based solely on the advisors' declaration. Instead, the advisors must obtain a certificate from the Income Tax Department for non-deduction or lower deduction, which should be noted when filing the TDS return.