SubstitutionHigh ImpactINCOME_TAX_ACT_1961
Official PDF (p. 2)INCOME_TAX_ACT_1961 · Section 194J & 194C / TDS Rates
Rationalisation of TDS Rates under Section 194J and Contractor Payments under Section 194C
Applicable from 2026-12
Attempt Applicability
2026-06:Excluded
2026-12:Applies
Statutory Comparison
Prior PositionPre-amendment
Different withholding rates applied to technical services versus royalty payments.
New PositionAmended
Rationalised 2% TDS rate for fees for technical services (other than professional services) under Section 194J to reduce classification disputes.
Affected Syllabus Chapters
direct-and-indirect-taxation
heads-of-income
Code: heads-of-income
Authority Document Reference
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