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Section 194 M is applied to the HUFs and individuals who don't have to deduct TDS under other section of the Income Tax Act. This applies to the Individual and HUF if they have made a payment of 50 lakhs in a financial year to professionals, resident, or to any other services for their personal use.
The main objective of Section 194m is to ensure tax compliance and to lower tax evasion in high-value transactions.
Section 194M covers the payments made to the professional, contractors, and residents for services under a contract. Here are some of the examples of the payments covered under Section 194M:
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What is the nature of payments under section 194M?
Payments under Section 194M are divided into parts, which are given below: