Recently introduced Section 194M of Income tax Act, making it mandatory for Individual & HUF to deduct 5% TDS on prescribed payments
As per Section 194 M An Individual or HUF has to deduct TDS other than those who are required to get their accounts audited.
It applies when the total amount paid to a resident individual, for carrying out any contractual work, or providing any professional service, in a financial year exceeds Rs. 50,00,000/-
This section is effective from 1st September 2019.
Rate of TDS for any such payment is @5%
In case PAN of the deductee is not available then TDS will be deducted @20%
Such TDS is to be deposited through form 26QD within 7 days from end of the month in which the Tax deduction is made.
Also such person responsible for deduction of Tax under Section 194M shall furnish the certificate of deduction of tax at source in Form No. 16D to the payee within 15 days from due date of furnishing the challan cum statement in Form No. 26QD. Notification No. 98/2019 Dated; 18th November, 2019
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