Under section 194J, TDS needs to be deducted by the payer/ deductor (Other than Individual/ HUF) @ 10% on any amount paid or payable to a resident in excess of Rs. 30,000 as:  

  • Fees for professional services

  • Fees for technical services

  • Any remuneration or fees or commission by whatever name called paid to a director ( other than salary)

  • Royalty

  • Any sum referred to in clause (VA) of section 28.

However, from FY 2020-21, TDS needs to be deducted @ 2% on Technical Services payments. In case PAN of the payee is not available then TDS needs to be deducted @ 20%. 

e-TDS Return Form: Form 26Q needs to be filed by the Payer/ Deductor for that Quarter. And TDS needs to be deposited on or before the 7th of the next month via challan no. 281. 

TDS shall be deducted at the time of:

  1. Crediting the sum to payee account or

  2. Actual payment of cash or

  3. Payment via cheque, draft or via any other source, Whichever is earlier.