Ashutosh Choubey (Company Secretary) 09 October 2009

TDS on honorarium payment

Dear All

Some one has written an article and it is published in the newspaper. For such contribution an amount has been paid by the newspaper as honorarium. Should the newspaper deduct TDS on such payment as contractual payment u/s 194 C. Please reply with comments

Thanks

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1 Replies

Dashrath (MF) 02 March 2010

An honorarium is an ex gratia payment made to a person for their services in a volunteer capacity or for services for which fees are not traditionally required. This is used by groups such as schools or sporting clubs to pay coaches for their costs. Another example includes the payment to a guest speaker at a conference to cover their travel, accommodation, or preparation time.

Yes this is to be taxed as income from other sources and TDS is applicable u/s 194C