Applicability of TDS deduction from Doctors Engaged by Hospital: Kerala HC Directs to Dispose of Income Tax Appeal of Amrita Institute of Medical Science [Read Order]
Section 194 J(1) (ba) of the Income Tax Act, 1961 states that, unless the salary is already subject to TDS (Tax Deduction at Source) under Section 192, TDS must be deducted at a rate of 10% from any compensation, fees, or commissions paid to a director of the firm
![Applicability of TDS deduction from Doctors Engaged by Hospital: Kerala HC Directs to Dispose of Income Tax Appeal of Amrita Institute of Medical Science [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/Applicability-of-TDS-Applicability-of-TDS-deduction-from-Doctors-Engaged-by-Hospital-TDS-deduction-Kerala-HC-taxscan.jpg "Applicability of TDS deduction from Doctors Engaged by Hospital: Kerala HC Directs to Dispose of Income Tax Appeal of Amrita Institute of Medical Science [Read Order]")
In a ruling in favour of Amrita Institute of Medical Science and Research, the Kerala High Court directed the income tax department to dispose of the appeal within 3 months.The matter was related to non disposal of appeal on applicability of Tax deducted at source (TDS) deduction made to doctors engaged by the hospital. Read More: Failure to Respond to GST SCN send to email Despite...
In a ruling in favour of Amrita Institute of Medical Science and Research, the Kerala High Court directed the income tax department to dispose of the appeal within 3 months.The matter was related to non disposal of appeal on applicability of Tax deducted at source (TDS) deduction made to doctors engaged by the hospital.
Amrita Institute Of Medical Sciences And Research, the petitioner challenged the assessment orders for the years 2017-18 and 2018-19. Petitioner is a super specialty hospital and is registered under Section 12A of the Income Tax Act, 1961 ('the Act'). In respect of the aforementioned assessment years, orders were passed against which appeals have been preferred.. The issue that arises for consideration in both the appeals is whether the TDS deducted from payments made to Doctors engaged by the hospital should have been under Section 192 or under Section 194J of the Act.
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Section 194 J(1) (ba) of the Income Tax Act, 1961 states that, unless the salary is already subject to TDS (Tax Deduction at Source) under Section 192, TDS must be deducted at a rate of 10% from any compensation, fees, or commissions paid to a director of the firm. When making the aforementioned payments totaling more than ₹30,000 throughout a fiscal year, Section 194J is applicable.
A single bench of Justice Bechu Kurian Thomas viewed that the appeal itself can be disposed of in a time bound manner. In similar other instances, the Court has already directed such appeals to be disposed of and there is no reason why such a direction ought not be issued in this case as well.
The bench directed the 2 nd respondent to consider and pass appropriate orders oappeals relating to the assessment years 2017-18 and 2018-19, as expeditiously as possible, at any rate, within a period of three months. It was further held that till then, all coercive proceedings pursuant assessment orders shall be kept in abeyance.
To Read the full text of the Order CLICK HERE
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