Are tuition fees of Rs 25,000 subject to tax deduction. If yes under what section and what rate? Lavina Thakkar , Mumbai
Professional or technical services are subjected to TDS u/s 194J .However,Tuition fee is not subject to tax deduction at source for simple reason is that teaching is not defined as “profession” under I T Act.
Explanation below Section 194J states as under
“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;
The board has also not notified teaching as profession. The notified profession according to CBDT notification are
(a) The profession of authorised representative; and
(b) the profession of film artist (actor, cameraman, director, music director, art director, dance director, editor, singer, lyricist, story writer, screen play writer, dialogue writer and dress designer)—Notification : No. SO 17(E), dated 12-1-1977/
(c)Profession of Company Secretary—Notification : No. SO 2675, dated 25-9-1992/
(d)Profession of Information Technology—Notification : No. SO 385(E), dated 4-5-2001.
(a) The profession of authorised representative; and
(b) the profession of film artist (actor, cameraman, director, music director, art director, dance director, editor, singer, lyricist, story writer, screen play writer, dialogue writer and dress designer)—Notification : No. SO 17(E), dated 12-1-1977/
(c)Profession of Company Secretary—Notification : No. SO 2675, dated 25-9-1992/
(d)Profession of Information Technology—Notification : No. SO 385(E), dated 4-5-2001.
Therefore there is no need of TDS on the tuition fee .
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