recovery under 194c or 194j

[Guest]

sir,

The Govt has issued orders permitting to engage a person as Medical Officer on contract basis at a consolidated pay of rs 9300.00 per month for a period of one year... and we entered into an agreement with the doctor.In this case I would like to know the rule position whether to apply Section 194 C or 194J in recovering TDS (Income Tax).

Chakravarthy S.N.

[Jagadeesh Tiruveedula]

194J

[DEV KUMAR KOTHARI]

As a medical officer, Doctor  seems to be an employee (may be part time employee). Therefore, proper head is 'salary' and not payment to contractor or professional.

If his engagement is in a professional capacity without relationship of employer - employee, then the payment will be in nature of 'professional fees'/

AI Summary

Debate Over TDS Recovery: Should Medical Officer's Contractual Pay Fall Under Section 194C or 194J? A query was raised regarding the appropriate section for TDS recovery for a Medical Officer hired on a contract basis with a monthly consolidated pay of Rs 9300. The question was whether to apply Section 194C or 194J of the Income Tax Act. One respondent suggested using Section 194J, indicating the payment is for professional services. Another respondent argued that if the Medical Officer is considered an employee, the payment should be classified under 'salary' rather than as a contractor or professional fee. If the engagement is purely professional, Section 194J would be applicable.