Hospital bill for poor people
Rajkumar Gutti
(Querist) 08 September 2026
This query is : Resolved
We are corporate company paying hospital bills for operation, medicine, lab test etc. for poor people. Benefit recipient is poor people . The hospital bill is on company's name. company act as a
administrator.
Can income tax tds applicable is yes which sec. and what rate
T. Kalaiselvan, Advocate
(Expert) 11 September 2026
Even though the beneficiaries are poor people and the corporate acts as an administrator or under its Corporate Social Responsibility (CSR) program, the tax law looks at the nature of the transaction between the payer (the corporate company) and the service provider (the hospital).
Applicable TDS : Section 194J (Fees for Professional or Technical Services), @ 10% (if PAN is provided by the hospital) 20% (if PAN is not provided),
Medical services provided by doctors, surgeons, and hospitals are explicitly treated as "professional services" under Section 44AA / Section 194J of the Income Tax Act.
Since the hospital bill is raised in the company’s name and paid directly by the company, the transaction is legally a direct payment for medical services from the corporate to the hospital
