Budget 2024: Exclusion of Section 194J Payments from Section 194C w.e.f 1st Oct 2024

Starting from October 1, 2024, payments under Section 194J of the Income Tax Act, which covers fees for technical and professional services, will be excluded from the scope of Section 194C. Section 194C deals with payments to contractors and sub-contractors. This change means that payments for professional services will no longer be subject to the same tax withholding rules as those for contracts. This shift is intended to streamline tax compliance and clarify the treatment of different types of payments, ensuring that professionals and contractors are subject to appropriate withholding tax provisions.