Section 194M

Section 194M TDS on payments of certain Sums by Individual & HUF

Income Tax - Section 194LA a. This section is effective from 1-10-2004 which provides as follows; Any person responsible for paying any sum to a resident is required to deduct tax at source; b. The payment must be in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory [&he...

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Section 194M TDS – Certain Payments Individual/HUF

Income Tax - ♦ Introduction: Section 194M was introduced for the purpose to cover some specific high value transactions in personal nature under TDS which was previously excluded from TDS. ♦ Scope and meaning of section 194M: 1. Any person being an individual or HUF [other than those who are required to deduct income-tax as per the provisions [&he...

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TDS Rate Chart for Financial Year 2020-21

Income Tax - Simple TDS Rate Chart for Financial Year 2020-21 –  Applicable from 14th May 2020 Kindly Note amended rates are been given on the basis of PIB Notification dated 13.05.2020 and on the date of Publication of this post no notification in this regard is been notified by the CBDT. Press release can be accessed at […]...

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Section 194M TDS deduction by certain individual or HUF on certain expenses

Income Tax - Section 194M related to deduction of TDS on Payment of certain sums by certain individual or Hindu undivided family was introduced by the Finance Act 2019. As per Section 194M any person being an individual or HUF making payment to any resident for carrying out any work  in pursuance of contract, by way of commission […]...

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TDS Rate Chart for FY 2020-21 / AY 2021-22 – Updated

Income Tax - TDS Rate Chart For Assessment year 2021-22 /Financial Year 2020-21 As we all are aware that yesterday our Honourable Finance Minister has conducted press release. In that press release she declared that The TDS rates for all non-salaried payment to residents, and tax collected at source rate will be reduced by 25 percent of the […]...

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Form 26QD notified by CBDT for section 194M TDS payment

Income Tax - 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 […]...

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Tax Deducted at Source under Section 194M of Income Tax Act, 1961

Income Tax - As the Announcement under UNION BUDGET 2019 had proposed a new section 194 M of the Income Tax Act,1961, which requires an Individual or an HUF, to deduct TDS @5%, where they make payment which exceeds Rs. 50 lakh in a year to a contractor or to a professional. Any Person Other than Those who […]...

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CBDT extends due date of payment of Section 194M TDS

Circular No. 31/2019-Income Tax - (19/12/2019) - CBDT extends due date for payment of TDS under section 194M during the month of September, 2019 and October, 2019 and the due date for furnishing the challan-cum-statement in Form 26QD for the same, from 31.10.2019 and 30.11.2019 respectively to 31.12.2019. Consequently, the due date of furnishing o...

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CBDT notifies Form no. 16D & 26QD for TDS Payment & Return|Section 194M

Notification No. 98/2019-Income Tax [G.S.R.858(E)] - (18/11/2019) - The CBDT has notified that any sum deducted under section 194M shall be paid to the credit of the Central Government within a period of thirty days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QD. Every person responsible ...

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Recent Posts in "Section 194M"

Section 194M TDS on payments of certain Sums by Individual & HUF

Section 194LA a. This section is effective from 1-10-2004 which provides as follows; Any person responsible for paying any sum to a resident is required to deduct tax at source; b. The payment must be in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory [&he...

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Posted Under: Income Tax |

Form 26QD notified by CBDT for section 194M TDS payment

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 […]...

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Posted Under: Income Tax |

Section 194M TDS – Certain Payments Individual/HUF

♦ Introduction: Section 194M was introduced for the purpose to cover some specific high value transactions in personal nature under TDS which was previously excluded from TDS. ♦ Scope and meaning of section 194M: 1. Any person being an individual or HUF [other than those who are required to deduct income-tax as per the provisions [&he...

Read More
Posted Under: Income Tax |

TDS Rate Chart for Financial Year 2020-21

Simple TDS Rate Chart for Financial Year 2020-21 –  Applicable from 14th May 2020 Kindly Note amended rates are been given on the basis of PIB Notification dated 13.05.2020 and on the date of Publication of this post no notification in this regard is been notified by the CBDT. Press release can be accessed at […]...

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Posted Under: Income Tax |

Section 194M TDS deduction by certain individual or HUF on certain expenses

Section 194M related to deduction of TDS on Payment of certain sums by certain individual or Hindu undivided family was introduced by the Finance Act 2019. As per Section 194M any person being an individual or HUF making payment to any resident for carrying out any work  in pursuance of contract, by way of commission […]...

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Posted Under: Income Tax |

TDS Rate Chart for FY 2020-21 / AY 2021-22 – Updated

TDS Rate Chart For Assessment year 2021-22 /Financial Year 2020-21 As we all are aware that yesterday our Honourable Finance Minister has conducted press release. In that press release she declared that The TDS rates for all non-salaried payment to residents, and tax collected at source rate will be reduced by 25 percent of the […]...

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TDS rate Changes vide Finance Act 2020

In Budget 2020, Government has made various amendment either changes in existing TDS/TCS Rates or addendum new TDS/TCS Rates, A.Y 2021-22 TDS Rates  Chart (Specific to Changes in Budget) Changes in Existing Rate Sr.No Nature of Payment Section Limit          TDS Rate for         Ind. and HUF Other than Ind. and HUF If [&hell...

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Posted Under: Income Tax |

TDS Provisions related to Small Businesses & Covid 19 Relief

TAX DEDUCTION AT SOURCE (TDS) In order to ensure better tax compliance and ensuring the timely payment of tax to the Government treasury, a mechanism has been established by making it mandatory for certain persons responsible for making payment of some expenses to deduct tax from such payment and deposit it to the Government account. [&he...

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Posted Under: Income Tax |

How to Download TDS Certificate for Section 194M

1. Important Information on Download 197 Certificate for Section 194M -Only TRACES Registered users can Download 197 Certificate for Section 194M from F.Y 2019-20 onwards. -Deductor (after login as a Taxpayer on TRACES) can download 197 certificate if request of Form-13 is approved by Assessing Officer. -Deductor can view or download 197 ...

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Posted Under: Income Tax |

TDS Rates for Financial Year 2020-21 & Assessment Year 2021-22

Article compiles TDS Rate Chart For Financial Year 2020-21 and Assessment Year 2021-22 along with Due date of Payment of TDS and mode of Payment of TDS. Article explains Section under which TDS is deductible and TDS Rate Applicable. Article Covers Change in TDS Applicable from 01.04.2020 which was proposed by Union BUdget 2020 which [&hel...

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TDS Section 194M

What is Section 194M, Reason for the introduction of Section 194M, What is the meaning of ‘work’, ‘contract’, and ‘professional services’ in Section 194M, Who has to deduct TDS under section 194M, When can one deduct tax at source under section 194M, Rate of TDS under Section 194M and What is the time limit on […]...

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Section 194M TDS on payment to resident contractors & professionals

The Union Budget 2019-20 for the FY 2019-2020 was presented on 05th July 2019. The Budget proposed new Sections for TDS such as 194M which is applicable from 01st September, 2019. Article explains Reason for introduction of Section 194M, Meaning of Section 194M, Person liable to deduct TDS under Section 194M, Time limit for Tax […]...

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Posted Under: Income Tax |

Section 194M: Additional burden on Individuals/HUFs not liable to audit

Now, a new section 194M has been inserted whereby Individuals/HUFs (not covered under section 194C, 194H & 194J) shall deduct TDS @5% at the time of payment or credit in the books to any resident for:...

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TDS under Section 194M w.e.f. 01.09.2019

Section 194M: TDS @ 5% on payment to Resident Contractors & Professionals by an Individual / HUF [applicable w.e.f. 01.09.2019] A New Section 194M is inserted in The Income Tax Act, 1961 [“The Act”] vide Finance Act, 2019 to provide for levy of TDS at the rate of 5% on the sum paid or credited in a […]...

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Posted Under: Income Tax |

CBDT extends due date of payment of Section 194M TDS

Circular No. 31/2019-Income Tax (19/12/2019)

CBDT extends due date for payment of TDS under section 194M during the month of September, 2019 and October, 2019 and the due date for furnishing the challan-cum-statement in Form 26QD for the same, from 31.10.2019 and 30.11.2019 respectively to 31.12.2019. Consequently, the due date of furnishing of the certificate of deduction of tax in...

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A Brief about New Section 194M of Income Tax act, 1961

A New section, 194M has been introduced vide finance act, 2019 with regard to Payment of certain sums by certain individuals or Hindu undivided family, which reads as follows: Any person, being an individual or a Hindu undivided family (other than those who are required to deduct income-tax as per the provisions of section 194C, section...

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Posted Under: Income Tax |

Income Tax Updates for the Month of November 2019

Income Tax Updates for the Month of November 2019 (Notifications, Circulars and other amendments) 1. Tax deducted u/s 194M (TDS by Individual/HUF) to be deposited within 30 days from the end of the month in which tax deducted CBDT Notification No.98/2019-Income Tax dated 18-Nov-2019 a) Sec 194M: Applicable w.e.f 01-Sep-2019 An Individual/...

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Section 194M TDS Provisions as applicable From September 1 2019

FM Nirmala Sitharaman has presented her first Union Budget on 5 July 2019.  In the Union Budget Sec 194M and Sec 194N of Income Tax Act, 1961 has introduced with a view to encourage digital payments and discourage the practice of making payments in cash, the Union Budget 2019 has introduced Section 194N for deduction […]...

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New Section 194M & Section 194N effective from 1st September 2019

This Article give the snapshot of the newly inserted sections i.e.  Section 194M and Section 194N in the Finance Act (No. 2), 2019. Also covers Income Tax Notification No. 98/2019 dated 18th November 2019 issued by CBDT....

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CBDT notifies Form no. 16D & 26QD for TDS Payment & Return|Section 194M

Notification No. 98/2019-Income Tax [G.S.R.858(E)] (18/11/2019)

The CBDT has notified that any sum deducted under section 194M shall be paid to the credit of the Central Government within a period of thirty days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QD. Every person responsible for deduction […]...

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5 Recent Important Income Tax Changes we must know

Union Finance Minister Nirmala Sitharaman in her maiden budget speech announced some income tax-related changes which will come into effect from September 1, 2019. Cash withdrawals exceeding INR 1 crore in aggregate in a year from finance institutions will attract TDS while in case of property transactions, the definition of immovable pro...

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Posted Under: Income Tax |

TDS Provisions made Simple (Tax Deducted at Source)

Article explains Section wise requirement of TDS deduction, Threshold exemption limit and rate at which TDS needs to be deducted. Article is updated as on 01.10.2019 to include sections under which TDS needs to be deducted from 01st October 2019. Newly introduced section are Section 194M – TDS on any work in pursuance of contract [&hell...

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Posted Under: Income Tax |

Summary of Key Amendments on Income Tax And Corporate Law

Article explains TDS on cash withdrawals of over Rs 1 crore under section 194N of the Income Tax Act, 1961, TDS at the time of purchasing immovable property under Section 194-IA of the Income Tax Act, TDS on payments made to professionals and contractors under Section 194M,  TDS on life insurance proceeds Under section 194DA, […]...

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Section 194M of Income Tax Act- Analysis

As per newly introduced Section 194M: Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. Tax shall be deducted at the rate of 5% under section 194M with effect […]...

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Sec 194M: TDS on payment exceeding Rs 50 lakhs to Contractor or Professional by Individual/HUF

A new section 194M is proposed to be inserted in the Income Tax Act by the Budget 2019 that provides levy of TDS @ 5% on the sum or aggregate of sums, paid or credited in a year on account of contractual work or professional fees by an Individual or Hindu undivided family, not required […]...

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Section 194M: TDS on Payment of certain sum by certain Individual / HUF

The Budget introduced new section 194M covering TDS applicability on payment done to resident contractors, commission / brokerage and professionals. Let us analyze what the newly introduced section 194M has to say, in the present article....

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Changes in TDS provision vide Interim and Final Budget 2019

Changes in TDS provision via Finance bill,2019 as passed by Lok Sabha and Interim Budget, 2019 1. Sec 194M (new section): TDS on payment exceeding Rs 50 lakhs to Contractor or Professional by Individual/HUF (Applicable w.e.f. 01/09/2019) Insertion of New Section after Sec 194LD: (1) Any person, being an individual or a Hindu undivided fam...

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Changes in TDS provision via Finance Bill 2019

Budget 2019: Changes in TDS provision- Related to 1. Section 194M : TDS on payment exceeding Rs 50 lakhs to Contractor or Professional by Individual/HUF, Section 194N: TDS on Cash Withdrawal exceeding Rs 1 crore from banks or cooperative bank or post office, Section 194DA: TDS on sum received under life insurance policy and Section [&hell...

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Posted Under: Income Tax |

Tax Deducted at Source under Section 194M of Income Tax Act, 1961

As the Announcement under UNION BUDGET 2019 had proposed a new section 194 M of the Income Tax Act,1961, which requires an Individual or an HUF, to deduct TDS @5%, where they make payment which exceeds Rs. 50 lakh in a year to a contractor or to a professional. Any Person Other than Those who […]...

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Posted Under: Income Tax |

Individual/HUF to Deduct TDS on Contractual & Professional Services

Are you an Individual or HUF Taxpayer? Be Ready to Deduct TDS on Contractual and Professional Services from 1st September 2019 In the Budget 2019 a new Section 194M has been inserted to require any individual or HUF (who is not required to deduct tax under Section 194C or 194J) to deduct tax at source […]...

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Scope of Section 194M – Implications

The Finance Minister with the view of widening and deepening of tax base proposed to bring in new provision for deduction of tax at source by Individuals and HUFs. Extract of the Memorandum of objects and reasoning reads as follows: B. WIDENING AND DEEPENDING OF TAX BASE Tax Deduction at Source (TDS) on payment by […]...

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Section 194M: TDS on payments to contractors and professionals

Section 194M – Deduction of TDS by Individual and HUF from payments to contractors and professionals Budget 2019 has proposed a new Section 194M, which requires an individual or an HUF , to deduct TDS @ 5%, where they make payment exceeding Rs. 50 Lac in a year to a contractor (referred to in Section […]...

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Newly Introduced Section of TDS- 194M- An Analysis

As per the existing provisions of Section 194C and Section 194J, an individual or HUF, who are not liable to tax audit under Section 44AB(a)/44AB(b), shall not be required to deduct tax under these provisions. Thus, no tax is required to be deducted by an individual or HUF from payment made to contractor or professional […]...

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2% TDS on cash withdrawal to discourage cash transactions

In order to further discourage cash transactions and move towards less cash economy, it is proposed to insert a new section 194N in the Act to provide for levy of TDS at the rate of two per cent on cash payments in excess of one crore rupees in aggregate made during the year, by a […]...

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Individual/HUF to deduct TDS on payment to contractors & professionals

Tax Deduction at Source (TDS) on payment by Individual/HUF to contractors and professionals under new section 194M At present there is no liability on an individual or Hindu undivided family (HUF) to deduct tax at source on any payment made to a resident contractor or professional when it is for personal use. Further, if the […]...

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Posted Under: Income Tax |

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