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 30th April
  2. When payment in any other month: 7TH Day of Next Month

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