Withholding tax on payments for work and professional services reduced, easing deduction obligations for certain individuals and HUFs. The amendment lowers the withholding rate under section 194M for payments by an individual or Hindu undivided family to a resident for carrying out work (including supply of labour), by way of commission, brokerage or professional fees. The obligation to deduct at the time of credit or payment remains; only the rate is reduced from five per cent to two per cent. The change is prospective and takes effect from 1st October, 2024.
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Withholding tax on payments for work and professional services reduced, easing deduction obligations for certain individuals and HUFs.
The amendment lowers the withholding rate under section 194M for payments by an individual or Hindu undivided family to a resident for carrying out work (including supply of labour), by way of commission, brokerage or professional fees. The obligation to deduct at the time of credit or payment remains; only the rate is reduced from five per cent to two per cent. The change is prospective and takes effect from 1st October, 2024.
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