SECTION 194 M: TDS ON PAYMENT TO RESIDENT CONTRACTOR AND PROFESSIONAL

SECTION-194M: TDS ON PAYMENT TO RESIDENT CONTRACTOR AND PROFESSIONAL

CONDITIONS:

• This section applicable on

1. Individual
2. HUF

• And they are not required to get their accounts audited during the financial year.
• And the payment is made only to the resident individual relating to contract work and for getting the professional services.
• And such payment should be exceed of Rs.50,00,000/ during the year under consideration.
• And the TDS is deposited by individual or HUF by quoting their PAN and not required to get the TAN for depositing the TDS.

RATE OF TDS

TDS is 5% of payment made in excess of Rs.50,00,000/ during the financial year.

TIME OF DEDUCTION

TDS is deducted earlier of following dates :

1. At the time of credit
2. At the time of payment of amount

TIME LIMIT OF DEPOSITING

• When payment is made on or behalf of the Government: At date of payment
• When payment made by other person

1. When payment  made in month of March: Up to 30^th April
2. When payment in any other month: 7^TH Day of Next Month