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TDS under section 194M is applied to individuals and HUFs if they are a part of a business or a profession that is more than INR 1 crore or 50 lakhs. This section applies to the total amount that is paid for any contractual work or commission paid by any Individual resident.
Who is responsible for tax deduction under section 194M?
According to the Union Budget 2019, if any HUF or individual pays for any work, such as supplying labor, any contract fees, or professional services fees in the current financial year of more than 50,00,000, then they have to deduct TDS at 5%.
If any HUF or individual work is completed or brokerage paid, then they are responsible for tax deduction under section 194M.
Under Section 194M, an individual and HUF are required to deduct tax.
The work in section 194 includes:
If the total amount paid to a resident is more than 50,00,0.00 in a financial year, then the TDS will be deducted at 5% under section 194M. If the PAN of a person is not available, then the 20% TDS will be deducted.
Here are some of the key points to note under section 194M:
The word professional services in section 194M includes:
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What is the last due date for depositing TDS under section 194M?
For deducting the TDS under section 194M, a person needs to file a Form 26QD within 30 days from you have made the payment.