Section 393(1); Table [For Payment to Resident]-Payments to contractors, fees for professional and technical services, etc.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Rs.30,000 per contract or Rs.1,00,000 in aggregate during the tax year 6(ii) Any sum for carrying out any work, fees for professional services, or commission/brokerage (other than insurance commission) Individual or HUF (other than those covered under Sl. Nos. 6(i), 6(iii) or 1(ii)) 2% Rs.50,00,000 6(iii) Fees for professional services, fees for technical services, director's remuneration/fees/commission (other than section 392), royalty, or any sum referred to in section 26(2)(h) Specified person Concessional TDS rate of 2% applies to fees for technical services (excluding professional services), royalty for cinematographic films, and payments to persons exclusively engaged in the o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....UFs This clause applies to an Individual or Hindu Undivided Family making payment- • for carrying out any work; • by way of fees for professional services; or • by way of commission or brokerage (other than insurance commission), provided such person is not otherwise liable to deduct tax under- • Sl. No. 6(i); • Sl. No. 6(iii); or • Sl. No. 1(ii). The salient features are- • TDS at 2%; and • threshold of Rs.50,00,000. This provision brings within the TDS framework high-value payments made by Individuals and HUFs who are otherwise outside the scope of the regular deduction provisions. Sl. No. 6(iii) - Profess....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... • Sl. No. 6(iii) applies to professional and technical services, royalty and director's remuneration paid by specified persons, with differential rates of 2% and 10% depending upon the nature of the payment. • The Note to Sl. No. 6(i) provides a special mechanism for determining the value on which tax is to be deducted where the invoice separately specifies the value of materials. Exception: • Section 393(4); Table S.No. 8 • Section 393(4); Table S.No. 9 Comparative Analysis: Sections 194C, 194M & 194J (Income-tax Act, 1961) vs. Section 393(1), Sl. No. 6 (Income-tax Act, 2025) Particulars Section 393(1), Sl. No. 6(i) (Income-tax Act, 2025) Secti....