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Section 194M - Payment of certain sums by certain individuals or HUF - Income Tax - Ready Reckoner - Income TaxExtract Section 194M - Payment of certain sums by certain individuals or HUF Applicability 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 194H or section 194J ) responsible for paying any sum to any resident during the financial year (a) for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract, (b) by way of commission (not being insurance commission referred to in section 194D ) or brokerage or (c) by way of fees for professional services Time of tax 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, Tax Rate of TDS - 5% of such sum 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 ₹ 1 crore or ₹ 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. 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.
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