TDS on Professional Fees: Section 194J vs Section 194C Differences and Rates

Why Your Invoices Get Deducted at 10% vs 2%

When service providers and professionals invoice corporate clients, clients often deduct TDS. Section 194J governs fees for professional services (10% rate for doctors, lawyers, CAs, architects) and technical services (reduced to 2% to align with Section 194C). Section 194C applies to work contracts (1% for individuals, 2% for entities).