TDS Applicability on Payments for Content Writing Services, Income Tax

[Ramanathan Seshan]

Dear Experts,

Our organization avails content writing services from various professionals. We seek clarification on whether TDS is required to be deducted on such payments. If so, kindly advise under which section of the Income Tax Act the deduction should be made.

Regards,

S Ram

Posts / Replies

[YAGAY andSUN]

Yes, TDS is applicable on payments made to professionals for content writing services, as these are considered professional services under the Income Tax Act.

🖋️ Nature of Service: Content Writing

Content writing involves:

• Original creation of written material
• Use of creative and intellectual skill
• Deliverables often include website content, blogs, articles, promotional materials, etc.

This is categorized as a professional service, especially when done by individuals, freelancers, or firms with expertise in communication, journalism, or digital marketing.

✅ Applicable Section of the Income Tax Act:

🔹 Section 194J – Fees for Professional or Technical Services

TDS under Section 194J applies to:

• Services provided by professionals such as writers, editors, designers, consultants, etc.
• Includes content creators if their services are not routine or mechanical but involve specialized skill.

📌 TDS Rate under Section 194J:

Payee Type	TDS Rate
Resident Individual / Firm / Company	10%

• TDS should be deducted on the gross amount (excluding GST if shown separately).

❗ Threshold Limit:

• TDS not required if total payment to a payee during a financial year does not exceed ₹30,000.
• If cumulative payment exceeds ₹30,000, TDS applies from the first rupee.

🚫 Not under 194C:

• Section 194C applies to contracts involving routine or mechanical work.
• Content writing, being a creative, intellectual, and skilled task, is best covered under Section 194J.

✅ Summary Table:

Particulars	Details
Service	Content writing
TDS Applicable?	✅ Yes
Section	🔹 Section 194J – Professional/Technical services
TDS Rate	🔹 10%
Threshold Limit	₹30,000 per financial year per payee
TDS on GST?	❌ Exclude GST if shown separately in invoice

***

[k.lakshmipati rao]

Dear Mr.Ramanathan Seshan

Effective from 01-04-2025,the threshold limit for Sec.194J is increased to Rs.50,000/- 

[Manish Kumar]

194J for professionals

194C for others,

[Ramanathan Seshan]

Dear Yagay-sir Manish-sir, Rao-sir,

Thanks for your valuable response.

Regards,

S Ram