Tds

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sandeep bajpai (Querist)
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12 November 2013 please let me know that an individual paying Rs.25,000/-(single payment in a day) to legal adviser or advocate required to deduct tax at source.

Brijesh Kirit Mehta

Brijesh Kirit Mehta (Expert)
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12 November 2013 TDS on fees for professional or technical services is covered by Section - 194J (If payment is above Rs. 30,000). Individual shall be required to deduct tax at source u/s 194J only if their total sales, gross receipts or turnover exceed the limit prescribed u/s 44AB (Business - 1 crore and Profession - 25 Lakhs) in the immediately preceding financial year.

However, No TDS is applicable if such payment is made for personal purpose.

First, it needs to be identified whether this is for personal purpose or not and accordingly the provision of section 194J will be applicable. In this case, if the individual is covered under section 44AB of Income Tax Act, 1961, then TDS is deducted if the payment is exceeding Rs. 30,000. And if it is for personal purpose, no TDS will be deducted.

Let me know, if you need any further clarifications.