Under Section 194J of the Income Tax Act, any person (excluding an individual or Hindu Undivided Family) making a payment to a resident for professional or technical services is required to deduct TDS at a rate of 10% or 2%, depending on the nature of the payment. This provision ensures that tax is collected at source on specific payments like professional fees, technical services, or royalty payments exceeding a specified threshold. In this article, we will explore the applicability, deduction rates, and consequences for non-compliance under Section 194J.In this article, we will discuss the applicability, rates, threshold limits, and consequences of not deducting TDS under Section 194J.What is Section 194J?Section 194J covers payment for professional, technical fees, royalty and non compete fees, including directors remuneration.TDS is deducted at:10% for professional services, royalty and directors remuneration2% for technical services20% where PAN is not provided by the recipient.Payments of personal nature are not subject to TDS deduction under section 194J.Payments CoveredThe types of payments to residents covered under this section are as follows:Fees for professional feesFees for technical servicesRemuneration or fees or commission paid to directors excluding salary (Example: sitting fees to attend board meetings)RoyaltyPayments in the nature of non-compete fees (i.e., fees paid to not carry on any business or profession for a specified time and within certain geographical boundaries) or fees paid not to share any technical knowledge or know-how.Professional ServicesServices provided by a person to carry on medical, legal, architectural, or engineering professions. It also includes any other profession notified by the CBDT Board under Section 44AA.Notified Professions by CBDTCBDT has notified the profession of a film artist, company secretary, accountancy, advertising, interior decoration, technical consultancy or authorized representatives and the profession of information technology under Section 44AA to date.CBDT has further notified sportspersons, commentators, event managers, anchors, umpires and referees, physiotherapists, coaches and trainers, team physicians, and sports columnists under Section 194J.Technical ServicesAs per income tax rules, ‘fees for technical services’ means managerial, technical, and consultancy services. It does not include payments considered as Salary by the recipient of such income. Technical services could be providing services that involve technical expertise or expertise in technology. The scope of managerial services can be defined as running and management of the business of the client. Consultancy services can be understood as advisory services wherein necessary advice and consultation are given to the clients for their business.As per the Supreme Court’s judgment, technical service includes services provided by humans. It does not include services provided by machines or robots.RoyaltyRoyalty means the payment made for:Transfer of rights or usage of an invention, model, design, trademark, patent, etc.Use of patents, inventions, designs, etc.Provide any information related to using an invention, patent, formula, etc.Transfer of rights related to scientific findings, literary work, films or videotapes for radio broadcasting but does not include consideration for the sale, exhibition, or distribution of cinematographic films.Providing any information related to technical, industrial, commercial or scientific knowledge, experience or skill.Non-Compete FeesNon-compete fees imply the payment made in cash or kind in return for an agreement that restricts them from sharing any license, patent, trademark, franchise, know-how, commercial or business rights, or information likely to be utilized elsewhere for processing, manufacture, or any other provisional service.Persons Liable To Deduct TaxEvery person making a payment in the nature of fees for professional or technical services is liable to deduct tax at source. However, the below persons are not liable to deduct TDS on such payments:In case of an individual or HUF carrying on a business: Where turnover does not exceed Rs 1 crore during the previous financial year.In case of an individual or HUF carrying on profession: Where turnover does not exceed Rs 50 lakh during the previous financial year.To put it simply, all entities (other than individuals/HUF who are not required to do a tax audit in the preceding year) need to deduct tax (TDS) while paying fees for professional or technical services.

If you are acquiring a home by taking a loan, then you can claim deductions on interest paid up to Rs.2 lakhs on self-occupied property under section 24(b). Whereas entire interest can be claimed as deduction in case of let out property. Principal repayment of Rs.1.5 lakhs can also be claimed under section 80C. For first time home buyers, deduction can be claimed under section 80EE (Rs.50,000) or 80EEA (Rs. 1.5 lakh), on satisfaction of conditions specified. This deduction is in addition to the deduction available under section 80C.While obtaining a housing loan can be costly, it is also possible to benefit from several tax deductions that can help you save money on taxes each year.

Many of us spend little time planning our retirement. We rely on EPF accumulations to come to our rescue. But for some of us, things have changed or soon will. The central government and a lot of private employers have moved to NPS. EPF is losing its glory in a falling interest rates scenario.We will discuss more about the pros/cons of investing in NPS.

Professional tax is a kind of tax levied by the state government on salaried or self-employed individuals. As per Clause 2 of Article 276 of the Indian Constitution, it is applicable to all kinds of professions, employment, and traders in the particular state. Only 17 states impose a professional tax in India, and Karnataka is one of them. In this article we will learn about the professional tax in Karnataka, including its slab rates and related information.Recent Update In the 16th Karnataka Budget for 2025-26, effective from 1st April 2025 a new amendment to the Karnataka Tax on Professions, Trades, Callings and Employment Act 1976 increased the professional tax amount for salary and wage earners from Rs. 2,400 p.a.

The Income Tax Act provides taxpayers with the option of selecting from two regimes: the old tax regime and the new tax regime. The old regime allows for various exemptions and deductions. On the other hand, the new regime offers lower tax rates but eliminates most of these deductions, aiming for simplicity and ease of filing. For FY 2025-26, the new regime provides a significant benefit, as the tax liability is reduced to nil for incomes up to Rs. 12 lakh.

Form ITR-1 allows individual residents in India to file an income tax return for income up to Rs 50 lakh. You can report income from salary, one house property, other sources and agricultural income up to Rs 5,000. In this article, we will tell you the procedure for filing your income tax return with rental income through ITR-1.Details of an Individual TaxpayerEnter your complete name, gender, date of birth, PAN and father’s name. You need to enter their postal address, mobile number, and e-mail address as well.Upload Form 16 for Income from SalariesDeclare your ‘income sources’. You must report the income from the salary.

 Form 10A is the application form for re-registering trusts (religious, charitable or institutions) already registered under section 12A, 12AA, 10(23), 80G and for the provisional registration of new trusts  (religious, charitable or institutions) under the Income Tax Act, 1961. This form provides necessary information to the Income Tax department about the compliance with the provisions of the Income Tax Act, 1961 and genuineness of an organisation’s activity. Earlier, section 12AA governed the registration procedure under the Income Tax, 1961, for claiming exemptions under sections 11 and 12. The Finance Act of 2020 introduced the new section 12AB to provide the procedure of re-registration or fresh registration for religious or charitable trusts or institutions to avail of tax exemptions under sections 11 and 12. The Finance Act of 2021 made further amendments to section 12AB. After 1 April 2021, section 12AA became inoperative. What is Form 10A?Form 10A is an application submitted to the Income Tax Department to re-register and provisionally register religious or charitable trusts or institutions under section 12A, 12AA, 10(23), 80G. This form aims to inform the Income Tax Department about compliance with the provisions of the Income Tax Act and the genuineness of activities carried out by these trusts.

The Employee Provident Fund Organisation (EPFO) allows its members to withdraw from their EPF account balance. Most of the time, EPF members’ bank accounts become inactive or closed without the members informing the EPFO about the new bank account details. Incorrect bank account details can lead to transaction failure. Members of EPFO can prevent such failed transactions upon their withdrawal request by updating their bank account details through the EPFO Portal.All Employees Provident Fund (EPF) members must link an active bank account to their PF accounts for withdrawals. In recent times, it has become easier for EPFO subscribers to update their bank details through the EPF India portal.

The Income Tax Department has introduced various forms for different taxpayers. An assessee should choose the appropriate form according to the source of income. One such Income Tax Return (ITR) is the ITR-6 form for companies. This article covers all about ITR 6.What is the ITR-6 Form?ITR 6 is the Income Tax Return filing form specifically meant for Companies other than companies claiming exemption under section 11 must furnish their income tax return in ITR-6 Form.What are the Entities Claiming Exemptions under Section 11?Companies claiming exemption under section 11 are those whose income from property is held for charitable or religious purposes.Who Should File ITR 6?All companies registered under the Companies Act 2013 or the earlier Companies Act 1956 should file ITR 6 Form. However, if the company's source of income comes from the property held for religious or charitable purposes, it is not required to file the ITR 6 Form.E-filing Audit ReportsIf the assessee is liable for Audit u/s 44AB of the Income Tax Act or it is required to get the audit done under any other law, then the accounts have been audited by an accountant, the details of such audit report, auditor along with the date of furnishing it to the department electronically has to be provided. Since the company is required to get the accounts audited under The Companies Act, the accountant must submit the audit report in FORM 3CA and 3CD.ClearTax Automatically Selects the Right ITR Form for youNot sure what ITR form to pick? Our software automatically picks it when you e-file.E-FILE IN JUST 7 MINUTESWho Should File ITR-6 Form?The following entities should file ITR-6 forms as per the Income Tax Act Domestic Companies: Companies having their registered place of business in India are called domestic companies, and these companies are governed by Indian tax laws.Foreign Companies: Companies that are registered outside India but have income sources in India are known as foreign companies.Partnership Firms: It includes all partnership firms, including limited liability partnerships (LLPs), that do not claim exemption under Section 11.Companies with Income from Business or Profession: Any company that has income from business or profession must file ITR 6.What is the Structure of the ITR-6 Form?The Form has been divided into two parts and several schedules:Part A: General informationPart A-BS: Balance Sheet as on 31st March Part A-BS-Ind AS: Balance Sheet as on 31st March or as on the date of the business combinationPart A-Manufacturing Account for the financial year Part A-Trading Account for the financial year Part A-P&L: Profit and Loss Account for the financial year Part A-Manufacturing Account-Ind AS: Manufacturing Account for the financial year Part A-Trading Account Ind-AS: Trading Account for the financial year Part A-P&L Ind-AS: Profit and Loss Account for the financial year Part A-OI: Other informationPart A-QD: Quantitative detailsPart A-OL: Receipt and payment account of company under liquidationPart BThe 46 schedules are:Schedule-HP: Computation of income under the head Income from House PropertySchedule-BP: Computation of income under the head “profit and gains from business or profession”Schedule-DPM: Computation of depreciation on plant and machinery under the Income-tax ActSchedule DOA: Computation of depreciation on other assets under the Income-tax ActSchedule DEP: Summary of depreciation on all the assets under the Income-tax ActSchedule DCG: Computation of deemed capital gains on sale of depreciable assetsSchedule ESR: Deduction under section 35 (expenditure on scientific research)Schedule-CG: Computation of income under the head Capital gains.Schedule 112A: Sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112ASchedule 115AD(1)(b)(iiii) - Proviso: Sale of equity share in a company or unit of equity oriented fund or unit of a business trust on which STT is paid under section 112A  Schedule VDA: Income from transfer of Virtual Digital Assets (VDA)Schedule-OS: Computation of income under the head Income from other sources.Schedule-CYLA: Statement of income after set off of current year’s lossesSchedule-BFLA: Statement of income after set off of unabsorbed loss brought forward from earlier years.Schedule- CFL: Statement of losses to be carried forward to future years.Schedule –UD: Details of unabsorbed depreciation and allowance under section 35(4)Schedule ICDS: Effect of Income Computation Disclosure Standards on profitSchedule- 10AA: Computation of deduction under section 10AASchedule- 80G: Details of donation entitled for deduction under section 80GSchedule 80GGA: Details of donations for scientific research or rural developmentSchedule 80GGC: Details of contributions made to political partiesSchedule 80IAC: Deduction in respect of eligible start-upSchedule 80LA: Deduction in respect of offshore banking unit or IFSCSchedule RA: Details of donations to research associations etc.Schedule- 80IA: Computation of deduction under section 80IASchedule- 80IB: Computation of deduction under section 80IBSchedule- 80IC or 80IE: Computation of deduction under section 80IC or 80 IESchedule-VIA: Statement of deductions (from total income) under Chapter VIA.Schedule-SI: Statement of income which is chargeable to tax at special ratesSchedule-IF: Information regarding investment in unincorporated entitiesSchedule-EI: Statement of Income not included in total income (exempt incomes)Schedule PTI: Pass through income details from business trust or investment fundSchedule-MAT: Computation of Minimum Alternate Tax payable under section 115JBSchedule-MATC: Computation of tax credit under section 115JAASchedule BBS: Details of tax on distributed income of domestic company on buy back of shares, not listed on stock exchangeSchedule TPSA: Secondary adjustment to transfer price as per section 92CE(2A)Schedule 115TD: Accreted income under section 115TDSchedule FSI: Details of income from outside India and tax reliefSchedule TR: Summary of tax relief claimed for taxes paid outside IndiaSchedule FA: Details of Foreign Assets and income from any source outside IndiaSchedule SH-1: Shareholding of unlisted companySchedule SH-2: Shareholding of Start-upsSchedule AL-1: Assets and liabilities as at the end of the yearSchedule AL-2: Assets and liabilities as at the end of the year (applicable for start-ups only)Schedule GST: Information regarding turnover/gross receipt reported for GSTSchedule FD: Break-up of payments/receipts in Foreign currencyPart B-TI: Computation of total incomePart B-TTI: Computation of tax liability on total incomeTax payments:Details of payments of Advance Tax and Self-Assessment TaxDetails of Tax Deducted at Source (TDS) on IncomeDetails of Tax Collected at Source (TCS) Key Changes in the ITR-6 Form in AY 2025-26Separate reporting of capital gains made before and after 23 July 2024.Share buyback losses can be claimed as capital losses.Presumptive Taxation under Section 44BBC for cruise operators.Diamond traders to declare profits at 4% of their gross revenue.TDS reporting requires mentioning the exact section code under which the deduction was made.More details are required to claim housing loan interest deduction u/s 24(b). How do I Fill out the ITR-6 Form?Sequence for filling out parts and schedulesThe Income Tax Department advises assesses to follow the sequence mentioned below while filling out the income tax return.Part ASchedulesPart BVerificationHow do I File my ITR-6 Form?This income tax return has to be compulsorily furnished electronically under digital signature to the Income Tax Department.No annexures requiredNo document (including the TDS certificate) should be attached with this return form while filing ITR-6.

The presumptive taxation scheme under section 44AD gives relief to small taxpayers having business income up to Rs. 2 Crores. If the cash receipts during the year falls within 5% of the total revenue, business having turnover up to Rs. 3 crore can opt for presumptive taxation. One of the key advantages of presumptive taxation is that you're not required to maintain books of accounts. Section 44AD allows taxpayers to calculate profit as a percentage of their turnover i.e., 6% & 8% depending on the nature of receipts.Taxpayers engaged in any business of plying, hiring, and leasing referred to in section 44AE are not eligible for presumptive taxation under section 44AD.