Section 194J where the amount of sum under 194J or, as the case may be, the aggregate

of the amounts of sum under 194J credited or paid or likely to be credited or paid during the financial year by a person to the account of, or to, the payee, does not exceed Rs 3 , !" the #$%S liability does not arise&& $herefore, #f single payment exceeds Rs 3 , """ 'es $%S attracted #( multiple payment , sum of all exceeds Rs 3 , """yes #$%S attracted&& )ow *uestion comes when to deduct if initial payment is below Rs 3 , !"&& if u can establish that further payments are to be made and total can exceed Rs 3 , """$%S from first payment& #f u cannot figure out whether any future payment could arise or not then no need to do #$%S but when future payment arises then deduct #$%S on total sum i&e including pre+ious payment during that (&'

,s per first pro+iso to sec& 194-, no deduction shall be made" .,/&&&&&& .0/ where the amount of such sum or, as the case may be, the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed thirty thousand rupees& )ow first point to be considered is 12redited or paid during the financial year does not exceed thirty thousand rupees&1 3ro+iso -ust says 1during the financial year1 not 1during the financial year or years1 #t means that we can pay thirty thousand rupees in one financial year without deducting the $%S& )ow second point to be considered is 14ikely to be credited or paid during the financial year does not exceed thirty thousand rupees&1 )ow before making payment of any amount under sec& 194-, we must deduct $%S if the current payment and any payment which may be paid during the same financial year in aggregate exceeds thirty thousand rupees1 4ets understand it through a example5 .1/ we ha+e taken a professional ser+icer in financial year 16"13 whose fees is Rs& 3 and we made payment of Rs& 3 in 16"13& 7ere we need not to deduct $%S as the sum paid does not exceed thirty thousand in a financial year&1 .6/ )ow lets see, we make a contract with effect from 1"1 "16 for two years with a 4awyer on retainership basis for monthly payment of Rs& 4 & #n this case we need not to deduct $%S for the payment made in october, no+ember, december"16, -anuary, february and march in 6 13 as the amount paid or credited or likely to be paid or credited is Rs& 64 .894 / and it does not exceed Rs& 3 in financial year 1"4"16 to 31"3" 13 but we should start deducting $%S in financial year 13"14 e+en from the +ery first month i&e& ,pril as the sum likely to be paid or credited is Rs& 4: i&e& 4 916 .since there is a contract for two years and it is more likely than not to exceed the limit of 3 in a financial year/ in financial year 13"14 which exceeds the limit of Rs& 3 in a financial year&/ )ow in financial year 14"1; we need not to deduct $%S as sum paid or credited or likely to be paid or credited is Rs& 64 .894 /& So you dont need to deduct $%S in any financial year&&&&