Section 194M - Payment of certain sums by certain individuals or HUF - Income Tax - Ready Reckoner - Income Tax

Section 194M - Payment of certain sums by certain individuals or HUF Applicability Any person, being an individual or a Hindu undivided family responsible for paying any sum to any resident during the financial year, other than those who are required to deduct income-tax as per the provision of, (a) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract ( section 194C ); (b) by way of commission (not being insurance commission referred to in section 194D ) or brokerage ( section 194H ); or (c) by way of fees for professional services ( section 194J ). Time of TDS deduction At the time of credit of such sum or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, Rate of TDS - 2% of Such sum. [ Substituted Vide Finance (No. 2) Act, 2024 w.e.f. 01.10.2024 ] 5% of such sum. [ Upto 30.09.2024 ] Threshold Limit No such deduction under this section shall be made if such sum or, as the case may be, aggregate of such sums, credited or paid to a resident during a financial year does not exceed 50,00,000 rupees. No requirement to obtain TAN The provisions of section 203A (requirement of obtaining TAN) shall not apply to a person required to deduct tax in accordance with the provisions of this section. Non-applicability If an individual or HUF required to deducted TDS u/s 194C, 194H, 194J. An Individual or a HUF whose total sale or gross receipt or turnover from the business or profession carried on by him exceeds Rs. 1 crore or Rs. 50 lakhs in case of business or in case of profession during the immediately preceding financial year and such amount is not exclusively credited or paid for personal purposes of such individual or a HUF. Furnishing TDs Return Every person shall furnish a challan-cum-statement in Form No. 26QD electronically in accordance with the procedures, formats and standards specified under rule 31A(5) within thirty days from the end of the month in which the deduction is made. [ Rule 31A(4C) ] Furnishing TDS Certificate Every person shall furnish certificate for deduction of tax in Form No. 16D to the payee within 15 days from the due date of furnishing statement in Form No. 26QD . [ Rule 31(3C) ] Meaning of specified term for the purpose of this section (a) contract shall have the meaning assigned to it in clause (iii) of the Explanation to section 194C ; (b) commission or brokerage shall have the meaning assigned to it in clause (i) of the Explanation to section 194H ; (c) professional services shall have the meaning assigned to it in clause (a) of the Explanation to section 194J ; (d) work shall have the meaning assigned to it in clause (iv) of the Explanation to section 194C.