TDS on payments by individuals and banks mandates withholding on contract, commission and large cash payouts to recipients.

Section 194M requires individuals and Hindu undivided families (not otherwise obliged) to deduct tax at source when paying residents for contract work, commission or brokerage, or professional fees at the time of credit or payment, subject to a monetary threshold and using statutory definitions; section 194N requires specified banks, cooperative societies and post offices to deduct tax at source on aggregate cash payments to a recipient exceeding a statutory cash threshold during the previous year, subject to listed exclusions and further notifications.

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