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TDS on Professional Fees: Section 393

Understanding TDS on professional fees under Section 393 including rates and compliance.

Alok K Acharya & Associates
1 March 2025·Updated 31 August 20261 min read
TDSProfessional Fees393Withholding
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TDS on Professional Fees: Section 393#

What is Section 393?#

TDS on fees to professionals.

When Applicable?#

  • Payment to professionals
  • Technical services
  • Royalty
  • Non-compete fees

TDS Rates#

  • 10% if PAN provided
  • 20% if PAN not provided
  • 2% for call centre operators

Threshold#

  • ₹30,000 per payment
  • Aggregate ₹1 lakh in FY

Exceptions#

  • Individual/HUF paying below threshold
  • Business expenses below limit

Conclusion#

Professional fees attract TDS.

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Alok K Acharya & Associates

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