TDS rates cheat-sheet — 194J / 194C / 194H

The three TDS sections that account for almost all professional-services receivables. Reference card for your associates.

Sec 194J — Professional / technical services

• Rate: 10% (2% for technical services, royalty for film exhibition).
• Threshold: ₹30,000 per FY (aggregated per deductee).
• Common for: CA / lawyer / doctor / engineer fees, software development services, technical consultancy, royalty.
• Lower-deduction: Form 13 can request a lower rate from AO.

Sec 194C — Contractor / sub-contractor

• Rate: 1% (individual / HUF), 2% (other deductee — co/firm/LLP).
• Threshold: ₹30,000 per single payment OR ₹1,00,000 aggregate per FY.
• Common for: works contracts, transport contracts, advertising contracts, manufacturing-as-per-spec.
• Note:"transporter with PAN + truck declaration" → nil TDS under Sec 194C(6).

Sec 194H — Commission / brokerage

• Rate: 5%.
• Threshold: ₹15,000 per FY.
• Common for: sales commission, insurance commission, brokerage on securities (but not stock-broking commission — separate section).

Form 26AS / AIS reconciliation

Every quarter, pull Form 26AS for each tax-paying client. Match each TDS credit there against an entry in your firm's 26Q. Discrepancies usually fall into:

• Missing credit in 26AS:deductor hasn't filed 26Q. Email the deductor; if no response, raise grievance on TRACES.
• Wrong PAN: deductor used incorrect PAN. Get them to file a correction statement.
• Wrong amount: usually fixed in the next quarter's correction.

Practical checklist before filing TDS quarterly

1. Generate FVU file via the RPU utility (latest version from TIN-NSDL).
2. Validate via NSDL file-validation utility.
3. Upload via TIN portal, sign with DSC.
4. Save the FVU + ARN + token number under the client's documents folder.
5. Generate Form 16A within 15 days of the quarterly return due date and send to deductees.