Contents
How much TDS is deducted on a ₹1 lakh professional fee payment?
No Sign-Up. No Paywall.
Calculate TDS deduction on a professional fee or technical services payment under Section 194J. Know your net receivable and how to claim this TDS credit.
Why TDS on Professional Fees Matters
Section 194J of the Income Tax Act requires payers to deduct 10% TDS on professional fees above ₹30,000 in a financial year. On a ₹1 lakh invoice, the client deducts ₹10,000 and pays you ₹90,000 — the ₹10,000 shows up as TDS credit when you file your ITR. If your final tax liability is less than total TDS deducted, you get a refund.
This affects freelancers, consultants, doctors, lawyers, chartered accountants, content creators, and IT contractors. The 10% rate is uniform across professional and technical services. If your annual professional income is below ₹3-4 lakh, your final tax is likely zero — meaning the entire TDS is refundable. File ITR to claim it.
Two practical points: (a) provide your PAN to clients — if you don’t, TDS is deducted at 20% instead of 10%; (b) if you’re regularly billing clients above ₹30K, ask them to file Form 26Q with your PAN so the TDS reflects in your Form 26AS and AIS by quarter-end. Mismatches between deducted TDS and what shows in your tax records is the most common refund-delay reason for freelancers.