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Tax Deducted at Source
Introduction
Procedure and scheme of Tax Deduction and Collection
Various incomes liable to Tax Deduction at Source
Tax Collection at Source (Section 206 C)
Electronic Filing of TDS & TCS returns
Consequences of Failure to Deduct & pay tax
Issue of Certificate for Tax deduction
TDS Forms

LIABILITY FOR TAX DEDUCTION

   
 

Any person, not being an Individual or a Hindu undivided family, who is responsible for paying to a resident any sum either by way of:-

  1. Fees for professional services, or

  2. Fees for technical services, or

  3. Royalty, or

  4. Any sum referred to in Section 28 (va), being any sum, whether received or receivable, in cash or kind, under an agreement for not carrying out any activity in relation to any business or not sharing any know-how, patent, copyright, trade-mark, license, franchise or any other business or commercial right of similar nature or information or technique likely to assist in the manufacture or processing of goods or provision for services.

Shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax on income comprised therein.


PLEASE NOTE:

  • In case of an Individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified for tax audit under Section 44AB during the financial year immediately preceding the financial year in which such sum by way of fees for professional services or technical services is credited or paid, shall be liable to deduct income-tax under this section.

  • Fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries".

  • Professional services means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section.

  • Royalty means consideration (including any lump sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head "Capital gains") for:-

    1. The transfer of all or any rights (including the granting of a licence) in respect of a patent, invention, model, design, secret formula or process or trade mark or similar property ;

    2. The imparting of any information concerning the working of, or the use of, a patent, invention, model, design, secret formula or process or trade mark or similar property ;

    3. The use of any patent, invention, model, design, secret formula or process or trade mark or similar property ;

    4. The imparting of any information concerning technical, industrial, commercial or scientific knowledge, experience or skill.

    5. The use or right to use any industrial, commercial or scientific equipment but not including the amounts referred to in Section 44BB;

    6. The transfer of all or any rights (including the granting of a licence) in respect of any copyright, literary, artistic or scientific work including films or video tapes for use in connection with television or tapes for use in connection with radio broadcasting, but not including consideration for the sale, distribution or exhibition of cinematographic films;

    7. The rendering of any services in connection with the activities referred to in Clauses (i) to (iv), (v) and] (vi) above.