Tax Deduction under section 194M

[PRIYAM KHAMBHATA]

Respected Sir

Please guide me on my query state as under

Whether TDS Provision under section 194M is applicable to an Individual, who is doing construction works on his Land. The amount of construction work is exceeding of Rs. 50 Lakh during the year under consideration. There is no execution of Contract Agreement between Individual and Contractor.

Thanks

AI Summary

Homeowners Doing Construction Work Over Rs. 50 Lakh Must Deduct 5% TDS for Resident Contractors Under Section 194M An individual undertaking construction work on personal land exceeding Rs. 50 lakh is subject to TDS provisions under section 194M of the Income Tax Act. Despite absence of a formal contract, the individual must deduct 5% TDS when payments to a resident contractor surpass the specified threshold. Deposit of TDS using Form 26QD is required within 30 days from the month of payment.