194M & Form 26QD - Rate of Tds & payment date to be entered in 26qd

[N K]

In 194M case, the total contract value is 100Lakhs. Contract date is Aug 2024.

1st Payment of 10 Lakhs was made in September 2024 but no tds was deducted as the total payment amount didn't exceed 50 lakhs.

2nd payment of 70 lakhs is paid on 30th dec 2024. So total payment (10L+70L) exceeds 50 lakhs. So Tds to be deducted on entire 80Lakhs now.

3rd payment of 20 lakhs will be paid in march 2025.

My doubts are

1) I saw that from Oct 2024, 194M tds rate is reduced from 5% to 2%. In the above case, TDS is attracted only in Dec 2024. So TDS rate is 2% (not 5%) and the tds amount is 80L×2% = 1.6Lakhs. Is it correct?

2) While filling form 26QD (after making 2nd payment of 70L), there is option of entering only one payment date. But in this case, payment is made on 2 different dates (10L in September, 70L in December). How do I show it in the form 26QD of income tax portal?

Please guide me. Thank you.

AI Summary

TDS Section 194M: Navigating Multiple Payment Thresholds and Reduced 2% Rate for Contracts Exceeding 100 Lakhs A discussion forum post addressing Tax Deducted at Source (TDS) under Section 194M for a contract with total value of 100 lakhs. The post explores TDS applicability across multiple payments, focusing on the reduced 2% rate from October 2024, threshold crossing, and Form 26QD filing requirements. The response provides detailed guidance on calculating and reporting TDS for payments made in September, December, and anticipated March.