Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
D. Forum
What's New


Discussions Forum
Home Forum Income Tax This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

TDS u/s 194M, Income Tax

Issue Id: - 115728
Dated: 29-11-2019
By:- Swaminathan Balasubramanian
TDS u/s 194M

  • Contents

Dear sir

My query is regarding the threshold limit of ₹ 50 lakhs. I have been making payments to the contractor from 1st Apr 2019 and the total paid so far is ₹ 50 lakhs. When I make the next payment, say another ₹ 5 lakhs, what is the TDS to be deducted? Is it for ₹ 5 lakhs or for ₹ 55 lakhs.



Post Reply

Posts / Replies

Showing Replies 1 to 1 of 1 Records

1 Dated: 29-11-2019

Section 194 M is reproduced below:

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 for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract, by way of commission (not being insurance commission referred to in section 194D) or brokerage or by way of fees for professional services during the financial years, shall, 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, deduct an amount equal to five per cent. of such sum as income-tax thereon:

On Plain reading of the section in case the Payment exceeds ₹ 50 Lakhs recovery of TDS has to be done on the total amount Paid @ the rate of 5% and not on the excess amount above 05 Lakhs.


Post Reply

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Site Map - Recent || Site Map || ||