TaxTMI 
TaxTMI 
Tax Deduction under section 194M
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....ax Deduction under section 194M<br> Query (Issue) Started By: - PRIYAM KHAMBHATA Dated:- 19-5-2025 Last Reply Date:- 21-5-2025 Income Tax<br>Got 1 Reply<br>Income Tax<br>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. 5....
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....0 Lakh during the year under consideration. There is no execution of Contract Agreement between Individual and Contractor. Thanks Reply By YAGAY andSUN: The Reply: Section 194M of the Income Tax Act applies to individuals or Hindu Undivided Families (HUFs) who are not required to deduct TDS under sections 194C or 194J, but who make payments exceeding Rs.50 lakh in a financial year to a resident....
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.... contractor or professional for carrying out any work, including construction. The applicability of TDS under this section does not depend on whether there is a formal written contract; even in the absence of a contract agreement, if the individual pays more than Rs.50 lakh for construction work to a contractor during the financial year, TDS at the rate of 5% is required to be deducted under Secti....
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....on 194M. Therefore, in your case, even though there is no formal contract executed between the individual and the contractor, the nature of payment for construction work and the threshold being crossed makes Section 194M applicable. The individual must obtain a Tax Deduction Account Number (TAN is not required under 194M) and deposit the TDS using Form 26QD within 30 days from the end of the mont....
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....h in which the payment is made.<br> Discussion Forum - Knowledge Sharing ....