What is the Difference Between 194j and 194m?

Given below is the list of payments that are protected under Section 194J: 

• Payments made to any professional services in various fields like Advertising, medicine, consulting, accounting, interior designing, which are recognized by the board under section 44AA. 
• Protection of payments for managing technological services, management services, or any other services which is provided by any individual. 
• For making payments for the ownership transfer, use of inventions, blueprints, concepts, formulas, trademarks, or any other kind of intellectual assets.

Here are some of the differences between Section 194J and Section 194M: 

• Under Section 194J, businesses and professionals are liable for tax deduction, and individuals and HUFs are eligible for Tax deduction under Section 194M. 
• For section 194J, TAN is required, and for section 194M, TAN is not required. 
• Under section 194J, you get a threshold of payment of INR 30,000, and under section 194M, you will get a payment threshold of INR 50 lakhs. 
• Under section 194J, you will get a TDS rate of 5% and in section 194M, you get a 1-10% TDS deduction rate.

Under section 194J, given low entities must deduct TDS: 

• Public or private trusts. 
• Private and public companies. 
• Private and government corporations. 
• Registered societies under the Societies Registration Act. 
• State or central government bodies. 
• Any recognized universities or educational institutions. 
• Liability limited partnerships or partnerships.