What is the Difference Between 194j and 194m?

CC Posted by: Chirag Choudhary
• 07 October, 2025
7 Reply

Section 194J of the Income Tax Act applied to the technical and professional services with a TDS limit set at INR 30,000. If you failed to do so, then you are liable to pay penalties and high interest charges. This section covers the payments of technical services, royalties, and professional fees. On the other hand, Section 194M is introduced to ensure tax compliance for HUFs and individuals. This section applies to Individuals and HUFs who make payments of more than INR 50 lakhs in a financial year to the resident contractors, service providers, and professionals for personal use.

Tags : Difference Between 194j and 194m

  • Daksh Sinha 12 October, 2025

    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.

    • SS
      Shikhar Shiromani 13 October, 2025

      Here are some of the other specific cases, where payments are protected in section 194J:

      • Payments are made to the medical services. 
      • Payments made to the publicity companies. 
      • Companies paid the fees to the registrar for data exchange services. 

       

  • Harshal Sutar 11 October, 2025

    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.

    • LJ
      lucky jain 13 October, 2025

      Section 194J is related to the TDS on the technical and professional services, and this section covers the HUFs and individuals who need to get their accounts audited under section 44AB. Under section 194M, it applies to individuals and HUFs who do not need to audit their accounts under section 44AB. Under this section, TDS rates are 5% for the payments to professionals or contractors for personal use of amounts more than 50 lakhs in a financial year.

    • AB
      Aniket Bansal 12 October, 2025

      The due date of the TDS under section 194M is at the time the amount is credited, or at the time of the payment by cheque and draft.

  • Ayush Patel 09 October, 2025

    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. 

    • RK
      Rajbeer Kumar 12 October, 2025

      Under section 194M, an individual or HUF has to deduct TDS if the payments are more than INR 50 lakhs in a financial year. 

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