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

TDS under section 194M applies to individuals and HUFs paying contractors over the prescribed threshold; deduct TDS and deposit promptly.
TDS on payments to resident contractors or professionals applies to individuals and HUFs not obliged to deduct under other contractor/professional provisions when aggregate payments for work, including construction, exceed the statutory threshold in a financial year; applicability is independent of a written contract. The payer must deduct the required TDS and deposit it using the prescribed electronic form within the specified time from the end of the month in which payment is made, following the stated identification and reporting formalities.