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Section 194J of the Income Tax Act

Section 194J of the Income Tax Act

Section 194J of the Income Tax Act covers TDS (Tax Deducted at Source) on payments made for professional or technical services. It mandates a deduction of 2%, 10%, or 20%, depending on the nature of the service, if the total payment in a financial year exceeds ₹30,000. However, if the payee doesn’t furnish their PAN, the applicable TDS rate increases to 20%.

If the deductor fails to deduct or deposit the TDS, the related expense cannot be claimed as a deduction when calculating taxable income. Moreover, interest is levied for delays in deduction or deposit.

In the following sections, we will explore the key rules under Section 194J, including when it applies, applicable TDS rates, latest updates, and consequences of non-compliance.

Section 194J in the Income Tax Act deals with the deduction of tax at source (TDS) on payments which are made to residents for availing professional or technical services, royalty, and non-compete fees. As of FY 2025–26 (AY 2026–27), TDS must be deducted when such payments exceed ₹50,000 in a financial year per category. This limit was at ₹30,000 until FY 2024-25.

This provision applies to companies, firms, LLPs, cooperative societies, trusts, and government bodies. These entities have to deduct TDS at the applicable rates before paying the fees for the professional services used. Individuals and HUFs are required to make TDS deductions under section 194J only if they are liable to audit under Section 44AB of the Income Tax Act.

If you’re wondering what is section 194J in income tax, it’s the clause that mandates deductors to withhold a specified percentage of tax before releasing payments for certain services, thereby ensuring compliance and transparency in tax collection.

What is Section 194J under the Income Tax Act?


The Income Tax Act's Section 194J requires tax deduction at source (TDS) on payments for royalties, technical services, professional services, and some non-compete agreements. When a payment exceeds ₹30,000 during a fiscal year, this section comes into play.

When is TDS Under Section 194J Not Required?

 

Section 194J TDS need not be deducted when the total amount paid for professional or technical services to a resident does not exceed ₹30,000 in a financial year. Similarly, TDS is not required to be deducted from payments made by individuals or Hindu Undivided Families whose business or professional turnover falls below the audit threshold set forth in Section 44AB. Payments made to government departments, local authorities, statutory corporations, or bodies established by statute also fall outside this requirement. In addition, reimbursements of expenses incurred on behalf of another party, where no element of profit or remuneration exists, are not subject to TDS under Section 194J, provided they are properly documented and linked to actual disbursements.

Who is required to deduct TDS u/s 194J?

Under Section 194J, any person, other than an individual or Hindu Undivided Family (HUF) not liable for audit under Section 44AB, who makes payments for professional or technical services to a resident must deduct TDS. In addition, individuals and HUFs whose business or professional gross receipts exceed the audit threshold specified in Section 44AB during the preceding financial year are also obligated to deduct TDS under this provision. The term “person” in this context covers a wide range of entities, including:

  1. Central or State Government bodies
  2. Local authorities such as municipalities or panchayats
  3. Statutory corporations and government agencies
  4. Public or private companies
  5. Cooperative societies registered under any State Act
  6. Trusts, whether charitable or private
  7. Universities and educational institutions
  8. Registered societies and associations
  9. Partnership firms
  10. Individuals, HUFs, Associations of Persons (AOP), and Bodies of Individuals (BOI) that meet the audit requirements under Section 44AB

Each of these entities must ensure timely deduction and deposit of TDS on professional or technical service fees paid during the financial year.

Applicability of Section 194J

TDS under Section 194J becomes applicable when the total amount paid or credited to a resident exceeds ₹50,000 for any of the following categories:

  • Fees for professional services

  • Fees for technical services

  • Royalty payments

  • Non-compete fees

  • Remuneration or commission to directors (not covered under salary)

Eligible deductors include entities such as companies, partnership firms, cooperative societies, local authorities, and associations of persons. HUFs and individuals not under audit are exempt, but once the business turnover exceeds ₹1 crore or professional receipts cross ₹50 lakh, they must deduct TDS.

Types of Payments Covered Under Section 194J

Professional Services

This refers to services offered by individuals such as doctors, lawyers, engineers, architects, interior designers, accountants, and consultants. It also covers professionals notified under Section 44AA, like authors, film artists, company secretaries, and media professionals, including journalists and news anchors. Payments made for these services attract TDS under Section 194J if the value crosses the prescribed limit.

Technical Services

These services include consultancy, managerial input, or any form of technical expertise provided to a business. Examples may include IT consulting, software programming, application development, and support-related services. The scope is broad and applies to fields where specialised technical knowledge is applied in exchange for a fee.

Royalty

Royalty covers payments made for the use of intellectual property such as copyrights, trademarks, patents, and licenses. It also includes payments made for sharing or transferring technical or commercial knowledge, formulas, or processes. These transactions are covered under Section 194J if the amount surpasses the threshold.

Non-Compete Fees

These are payments made under an agreement to prevent a party from entering into competition or sharing proprietary information. The amount paid to restrict business competition or knowledge-sharing is subject to TDS under Section 194J, depending on the nature and terms of the agreement.

Director’s Remuneration

Non-salary payments to company directors, such as sitting fees, commission, or professional charges, fall under the purview of Section 194J. These are not treated as salary income and are therefore liable for TDS deduction if they meet the applicable criteria.

TDS Rates and Threshold Limits (FY 2025–26)

The TDS rates under Section 194J are outlined below: 

Nature of Payment

TDS Rate

Threshold Limit

Fees for Technical Services, Call Centres

2%

₹50,000

Royalty (Film-related)

2%

₹50,000

Professional Services, Other Royalties

10%

₹50,000

Director’s Remuneration

10%

Nil

If PAN is not provided

20%

₹50,000

What is the meaning of professional services & technical services?

Under Section 194J of the Income Tax Act, the meaning of professional and technical services is clearly defined for the purpose of tax deduction. Professional services typically involve work carried out by individuals with specialised qualifications or expertise in specific fields. On the other hand, technical services refer to managerial, consultancy, or support services involving specific technical knowledge or experience.

Professional Services under Section 194J include:

  • Legal Services
  • Medical Services
  • Engineering Services
  • Architectural Services
  • Accountancy or Technical Consultancy Services
  • Interior Decoration Services
  • Advertising Services
  • Notified Professions (including those related to sports like umpires, coaches, commentators, physiotherapists, and similar professionals)

Technical Services under Section 194J include:

  • Managerial services
  • Technical services
  • Consultancy services (including any service where technical or professional knowledge is shared)

However, it does not include consideration for:

  • Construction
  • Assembly
  • Mining
  • Projects taxed as salary under the head “Salaries”

This distinction is important for determining when TDS under Section 194J applies.

Time of Deduction and Deposit

For non-government deductors, TDS under Section 194J must be deposited within 7 days from the end of the month in which the deduction is made. However, for deductions made in the month of March, the due date is extended to April 30. Government deductors follow the same timelines. In case this payment is made and credited on the same day in March, the TDS must be deposited by April 7. Adhering to these timelines is crucial to avoid interest or penalties for late deposits.

Consequences of Non-Compliance

If you fail to comply with provisions under Section 194J, you may have to face the following consequences: 

  • Disallowance of expense: 30% of the expense may be disallowed under Section 40(a)(ia) if TDS is not deducted or deposited on time.

  • Interest:

  • 1% per month for non-deduction

  • 1.5% per month for late payment after deduction

  • Penalty:

  • Equal to the TDS amount under Section 271C

  • Additional penalties under Section 221 for delayed payment

  • Prosecution:

  • Imprisonment from 3 months up to 7 years for wilful default in depositing TDS

TDS Exemption Limit Under Section 194J

Tax deduction under Section 194J applies when the total payment made to a resident surpasses ₹30,000 in a financial year for each category of service. This threshold is not cumulative for all services but is applied individually for each nature of service, such as professional fees, technical service charges, royalty payments, or non-compete fees.

Let’s understand this with an example:

ABC Ltd made the following payments to Ms. R:

Particulars

Amount

Payment made for professional services

₹18,000

Payment made for the royalty

₹14,000

Total payment to Ms. R

₹32,000

 

In this case, ABC Ltd is not liable to deduct TDS under Section 194J because both payments are for different categories and each is below the ₹30,000 threshold. Even though the total payment is over ₹30,000, TDS does not apply unless an individual category crosses the prescribed limit.

What is the rate & time limit for deposit of TDS?

To avoid fines, it's critical to make sure that TDS is deposited on time. The seventh of the month after the deduction is made is typically the deadline for depositing TDS. The deadline for March deductions has been extended to April 30.

194J TDS Rate Table:

Nature of Payment

194J TDS Rate

Fee payments for technical services

2%

Fee payments made to call centers

2%

Royalty paid for the sale, distribution, or screening of a film

2%

Other payments (e.g., professional services, non-compete fees)

10%

If the payee fails to provide a PAN

20%

Time Limit for Deposit of TDS

The time period for depositing TDS under Section 194J relies on the type of deductor, whether government or non-government, and the month in which the payment is made. In most cases, the deducted TDS must be deposited by the 7th of the following month. However, for payments made in March, there is an extended deadline to accommodate the closing of the financial year.

Payment Type

Non-Government Deductors

Government Deductors

Payment made before 1st March

7th day from the end of the month

7th day from the end of the month

Payment made in March

April 30

Tax payment is made on the date of payment; the challan is to be deposited by 7th April.

When is Section 194J under the Income Tax Act not applicable?

  • Personal Payments by Individuals/HUFs: If an individual or a Hindu Undivided Family makes a payment purely for personal or domestic purposes, Section 194J does not apply.
  • Payments to Non-Residents for Contract/Sub-Contract Work: Remittances to non-resident contractors or sub-contractors for fees relating to “professional or technical services” are covered by other provisions (not Section 194J).
  • Aggregate Payment Does Not Exceed ₹30,000 in a Financial Year: When the total of all professional/technical service fees paid by a deductor during the entire financial year is ₹30,000 or less, no TDS under Section 194J is required.
  • Royalty & Non-Compete Fees Paid by Individual/HUF: Even if royalty or non-compete fees exceed the ₹30,000 threshold, individuals and HUFs are exempted from deducting TDS on these payments under Section 194J.

Some Special Considerations by CBDT (Government) Circular on 194J Applicability

In order to clarify any confusion encompassing the relevance of Section 194J, the Central Board of Direct Taxes, or CBDT, has released clarifications over time. These special considerations help deductors correctly apply TDS rules for specific payment types and industries. Below are key scenarios highlighted by CBDT:

Routine Maintenance Contracts

As per CBDT, any payment for routine maintenance services, including the supply of spare parts, is liable to TDS under Section 194C. However, if such contracts involve technical services like diagnostics, system configuration, or software maintenance, then Section 194J will apply. Deductors must differentiate between purely mechanical work and technical services to apply the correct TDS section.

Recruitment Agencies

When businesses make payments to recruitment agencies for sourcing candidates, these fall under professional services. Therefore, TDS under Section 194J becomes applicable. This is because such agencies are rendering services requiring specific skills and knowledge, which classifies them under professional services defined in the Income Tax Act.

TDS Deduction on GST Amount

The CBDT has clarified that TDS under Section 194J should be calculated excluding GST, but only if GST is shown separately on the invoice. If the GST component is merged or not itemised, then TDS must be deducted on the total billed amount. Deductors must carefully check how the GST is presented before making deductions.

Media House

Payments made by a media company to an advertising agency as commission or service fees are subject to TDS under Section 194J. The nature of these payments involves professional expertise in media planning and strategy. Thus, even intermediaries in media-buying transactions are covered under this TDS provision.

When is the TDS Statement Issued and by Whom u/s 194J?

The TDS statement, in the form of Form 16A, must be issued by the deductor—i.e., the person or entity making the payment and responsible for deducting TDS under Section 194J. This certificate is provided to the deductee, whose income is subject to TDS. It serves as proof of tax deducted and deposited with the government. The issuance of Form 16A must adhere to specific quarterly deadlines as shown below:

Particulars

Due Date

April – June

15th August

July – September

15th November

October – December

15th February

January – March

15th June

Consequences of Non-Deduction or Late Deduction of TDS

If a person liable to deduct TDS under Section 194J fails to do so or deducts it late, they may be held accountable by tax authorities. In such cases, not only is interest charged, but there can also be penalties and prosecution depending on the severity and duration of the default.

Disallowance of Expenditure

As per Section 40(a)(ia) of the Income Tax Act, if TDS is not deducted on a payment liable for tax deduction at source, 30% of such expenditure may be disallowed while computing taxable income. This applies even if the expense is genuine. It remains disallowed until the TDS is deducted and deposited, impacting the deductor’s tax liability for that financial year.

Levy of Interest

When TDS is not deducted on time or deducted but not deposited with the government within the prescribed due dates, interest becomes payable. Interest is levied at 1% per month for delay in deduction and 1.5% per month for delay in deposit, calculated from the due date till the actual date of deduction or payment. This amount must be paid before filing TDS returns.

Levy of Penalty

In addition to interest, a penalty may be imposed under Section 271C of the Income Tax Act if a deductor fails to deduct TDS without a valid reason. The penalty amount can be equal to the amount of TDS not deducted. The penalty is imposed only after giving the deductor a chance to explain the reason for default and is subject to discretion by tax authorities.

Prosecution

The deductor may be prosecuted under Section 276B in severe circumstances where TDS is either not deducted at all or deducted but not paid to the government. This can lead to a fine and a maximum sentence of seven years in prison. However, this is usually not applied to small or infrequent errors, but rather to deliberate or persistent defaulters.

Examples of TDS on Professional Fees and Technical Services

  • Consultancy Fees: Payments made to consultants, strategy advisors, management professionals, or industry experts are subject to TDS under Section 194J.
  • Legal Fees: Payments to lawyers, legal advisors, or law firms for opinions, documentation, or representation attract TDS.
  • Medical Services: Payments to doctors, specialists, or medical practitioners for professional services are covered under this section.
  • Technical Services: Includes payments for IT support, software maintenance, system design, or technical troubleshooting.
  • Professional Contracts: Engagements involving architects, engineers, chartered accountants, and interior designers fall under the scope of 194J.
  • Commission Payments: If commissions are paid to agents, brokers, or intermediaries for bringing in business or facilitating deals, TDS may be applicable.
  • Honorarium or Guest Fees: Payments made to guest speakers, trainers, or panelists for events or seminars can attract TDS under professional services.

Recent Amendments to Section 194J

Recent updates to Section 194J have introduced clearer rates and conditions for TDS deduction. TDS on payments for technical services and call centre operations has been set at 2%, while professional services continue to attract a 10% rate. The maximum limit has been increased to ₹50,000 per financial year from the earlier limit of ₹30,000. Furthermore, it has been clarified that payments for professional services are not to be treated as contract work under Section 194C, with this clarification effective from October 1, 2024. Individuals and HUFs are now required to undertake TDS deduction under this section only if they fall under mandatory tax audit provisions. These amendments aim to streamline compliance and eliminate confusion between similar TDS sections.

Comparison Between Section 194J and Other TDS Sections

Now that you know what is Section 194J in income tax, let’s understand how it is different from other TDS sections. The differences between Section 194J and a few other sections are listed in the table below:

Section

Nature of Payment

TDS Rate

Applicability

194C

Work contracts

1% / 2%

On payments for labour, material, contract work

194H

Commission or brokerage

5%

On payments for services like brokerage

194I

Rent on land/buildings/equipment

2% / 10%

On payments exceeding ₹2.4 lakh/year

194J

Professional/technical/royalty fees

2% / 10% / 20%

Applies to service-based payments

Conclusion

Section 194J is a critical TDS provision for professionals, service providers, and businesses. If you are making qualifying payments over ₹50,000, ensure you deduct and deposit TDS correctly to stay compliant.

Understanding Section 194JA and 194JB, applying the right TDS rates, and avoiding misclassification can save you from penalties and ensure smooth tax processes.

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Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Reg Office: Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corporate Office: Bajaj Financial Securities Limited, 1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O/CDS (Member ID:6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No: IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN –163403. 

Website: https://www.bajajbroking.in/

RESEARCH DISCLAIMER

Broking services offered by Bajaj Financial Securities Limited | Registered Office: Bajaj Auto Limited Complex , Mumbai –Pune Road Akurdi Pune 411035 | Corporate Office: Bajaj Financial Securities Limited, 1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014 | CIN: U67120PN2010PLC136026 | Research Analyst SEB I Registration No: INH000010043.

Details of Compliance Officer: 

Mr. Harinatha Reddy Muthumula (For Broking/DP/Research)
Email: compliance_sec@bajajbroking.in
Contact No.: 020-4857 4486 

Investment in the securities involves risks, investor should consult his own advisors/consultant to determine the merits and risks of investment.

DISCLOSURES

Disclosures under the provisions of SEBI (Research Analysts) Regulations 2014 (Regulations) 

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities. There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. This research report has been prepared and distributed byBajaj Financial Securities Limited in the capacity of a Research Analyst as per Regulation 22(1) of SEBI (Research Analysts) Regulations 2014 having SEBI Registration No. INH000010043. 

DISCLAIMER

This e-mail/ short message service (SMS) may contain confidential, proprietary or legally privileged information. It should not be used by anyone who is not the original intended recipient. If you have erroneously received this message, please delete it immediately and notify the sender. The recipient acknowledges thatBajaj Financial Securities Limited or its holding and/or associated companies, as the case may be, are unable to exercise control or ensure or guarantee the integrity of/over the contents of the information contained in e-mail /SMS transmissions and further acknowledges that any views expressed in this message are those of the individual sender and no binding nature of the message shall be implied or assumed unless the sender does so expressly with due authority of Bajaj Financial Securities Limited. This message is not intended as an offer or publication or solicitation for distribution for subscription of or purchase or sale of any securities or financial instrument(s) to anyone in whose jurisdiction such subscription etc. requires prior local regulatory clearance or is contrary to the local laws of the land in any manner or as an official confirmation of any transaction. Before opening any attachments, please check them for viruses and defects. 

This service / information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose unless otherwise expressly authorised. This service / information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subjectBajaj Financial Securities Limited and affiliates/ group/holding companies to any registration or licensing requirements within such jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and persons in whose possession this document comes, should inform themselves about and observe any such restrictions.  

The data would be provided to the clients on an "as is" and "where-is" basis, without any warranty. Bajaj Financial Securities Limited or its subsidiaries and associated companies shall not be liable for any delay or any other interruption which may occur in providing the data due to any reason including network (Internet) reasons or snags in the system, breakdown of the system or any other equipment, server breakdown, maintenance shutdown, breakdown of communication services or inability of the Bajaj Financial Securities Limited or its subsidiaries and associated companies to provide the data. In no event shall the Bajaj Financial Securities Limited or its holding and associated companies be liable for any damages, including without limitation direct or indirect, special, incidental, or consequential damages, losses or expenses arising in connection with the data provided by the Bajaj Financial Securities Limited or its holding and associated companies.

ADDITIONAL DISCLAIMER FOR U.S. PERSONS

Bajaj Financial Securities Limited is not a registered broker-dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition, Bajaj Financial Securities Limited is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for U.S. persons. This email message does not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services and/or shall not be considered as an advertisement tool. "U.S. Persons" are generally defined as a natural person, residing in the United States or any entity organized or incorporated under the laws of the United States. US Citizens living abroad may also be deemed "US Persons" under certain rules.  

ADDITIONAL DISCLAIMER FOR CANADIAN PERSONS

Bajaj Financial Securities Limited is not a registered adviser or dealer under applicable Canadian securities laws nor has it obtained an exemption from the adviser and/or dealer registration requirements under such law. Accordingly, any brokerage and investment services provided by Bajaj Financial Securities Limited, including the products and services described herein are not available to or intended for Canadian persons.  

This mailer and its respective contents do not constitute an offer or invitation to purchase or subscribe for any securities or solicitation of any investments or investment services.  

DISCLAIMER FOR REPORT

DISCLOSURES UNDER THE PROVISIONS OF SEBI (RESEARCH ANALYSTS) REGULATIONS 2014 (REGULATIONS)

Bajaj Financial Securities Limited ("Bajaj Broking" or "Research Entity") is regulated by the Securities and Exchange Board of India ("SEBI") and is licensed to carry on the business of broking, depository services and related activities.  

This Report has been prepared by Bajaj Financial Securities Limited in the capacity of a Research Analyst having SEBI Registration No. INH000010043 and distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.  

This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Bajaj Financial Securities Limited and associates / group companies to any registration or licensing requirements within such jurisdiction. The distribution of this report in certain jurisdictions may be restricted by law, and persons in whose possession this report comes, should observe, any such restrictions. The information given in this report is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This information is subject to change without any prior notice. Bajaj Financial Securities Limited reserves the right to make modifications and alterations to this statement as may be required from time to time. Bajaj Financial Securities Limited or any of its associates / group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Bajaj Financial Securities Limited is committed to providing independent and transparent recommendation to its clients. Neither Bajaj Financial Securities Limited nor any of its associates, group companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including loss of revenue or lost profits that may arise from or in connection with the use of the information. Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein. Past performance is not necessarily a guide to future performance .The disclosures of interest statements incorporated in this report are provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. The information provided in these reports remains, unless otherwise stated, the copyright of Bajaj Financial Securities Limited. All layout, design, original artwork, concepts and other Intellectual Properties, remains the property and copyright of Bajaj Financial Securities Limited and may not be used in any form or for any purpose whatsoever by any party without the express written permission of the copyright holders.  

We offer our research services to clients as well as our prospects. Though this report is disseminated to all the customers simultaneously, not all customers may receive this report at the same time. We will not treat recipients as customers by virtue of their receiving this report.  

Bajaj Financial Securities Limited and its associates, officer, directors, and employees, research analyst (including relatives) worldwide may: (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies), mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company/company(ies) discussed herein or act as advisor or lender/borrower to such company(ies) or have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance. Bajaj Financial Securities Limited may have proprietary long/short position in the above-mentioned scrip(s) and therefore should be considered as interested. The views provided herein are general in nature and do not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing. This should not be construed as invitation or solicitation to do business with Bajaj Financial Securities Limited.  

Bajaj Financial Securities Limited or its associates may have received compensation from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have managed or co-managed public offering of securities for the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. Bajaj Financial Securities Limited or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report. Research analyst or his/her relative or Bajaj Financial Securities Limited’s associates may have financial interest in the subject company. Bajaj Financial Securities Limited, its associates, research analyst and his/her relative may have other potential/material conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance.  

Research analyst has served as an officer, director or employee of subject Company: No  

Bajaj Financial Securities Limited has financial interest in the subject companies: No  

Bajaj Financial Securities Limited’s Associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report.  

Research analyst or his/her relative has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Bajaj Financial Securities Limited has actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of research report: No  

Subject company may have been client during twelve months preceding the date of distribution of the research report.  

There were no instances of non-compliance by Bajaj Financial Securities Limited on any matter related to the capital markets, resulting in significant and material disciplinary action during the last three years. A graph of daily closing prices of the securities is also available at https://www.nseindia.com/

ANALYST CERTIFICATION

The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.  

RISK DISCLOSURE ON DERIVATIVES

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.

SEBI study dated January 25, 2023 on “Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment”, wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.

BROKERAGE DISCLAIMER

All leveraged intraday positions will be squared off on the same day. There is no restriction on the withdrawal of the unutilised margin amount. Brokerage will not exceed the SEBI prescribed limit. Visit : https://www.bajajbroking.in/pricing

MTF 

As subject to the provisions of SEBI Circular CIR/MRD/DP/54/2017 dated June 13, 2017, and the terms and conditions mentioned in the lights and obligations statement issued by the TM (if applicable).  

US INVESTING

International investment is not supervised by any regulatory body in India. Thus, any claim or dispute relating to such investment or enforcement of any agreement/contract /claim will not be under laws and regulations of the recognized stock exchanges and investor protection under Indian Securities Law. The account opening process will be carried out on Vested platform and Bajaj Financial Securities Limited will not have any role in it.  

MARKETSMITH / GOLDENPI / SOVEREIGN GOLD BONDS

Bajaj Financial Securities Limited is only distributor of this product. These are not exchange traded products and all disputes with respect to the distribution activity, would not have access to exchange investor redressal forum or Arbitration mechanism. Bajaj Financial Securities Limited is not a registered Investment Advisory. User discretion is required before investing. Client is requested to independently evaluate and/or consult their professional advisors before arriving at any conclusion to make any investment. The decision to invest shall be the sole responsibility of the Client and shall not hold Bajaj Financial Securities Limited, its employees and associates responsible for any losses, damages of any type whatsoever. 

IPO 

This should not be construed as soliciting investment. Investors’ discretion is required. Kindly consult your financial expert before investing. No need to issue cheques by investors while subscribing to IPO. Investments in securities markets are subject to market risks, read all the related documents carefully before investing.  

SCREENERS 

Screeners is not Exchange-approved products and any disputes related to the same will not be dealt on the Exchange platform. 

SECURITIES 

Securities quoted are exemplary and not recommendatory. 

IPV 

Account would be open after all procedure relating to IPV and client due diligence is completed. 

IMAGES 

The images used are only for representation purpose. Proper due diligence has been done for the images and the image is not of any artist. The same is captured from royalty free sites. 

DISCLOSURE TO CLIENTS REGARDING PAYOUT OF FUNDS

As per SEBI circular no. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84 dated June 08, 2023, Stockbrokers are required to upstream the entire client funds lying with them to the Clearing Corporation. Based on client’s request the funds’ release request must be placed with the Clearing Corporation. Based on the internal process and cut-off timelines of the Clearing Corporation the funds will be released to the Stock Broker. In view of this new process, as specified by the regulatory and the cut-off time of Clearing Corporation/Banks processing the funds, Bajaj Financial Securities Limited cannot commit the exact time for releasing funds payout to its client. Clients are requested to note that, Bajaj Financial Securities Limited will not be responsible for any inconvenience caused to clients due to delay in release of funds payout, including fines, delayed charges, defaults, etc.