04 June 2022
If he's not doing any business for which tax audit applicable. No TDS deducted on such payment. Pay the amount through banking channel. TDS applicable only when payment exceed 50 lacs under section 194M. It applies when the total amount paid to a resident individual, for carrying out any contractual work or providing any professional service, in a financial year exceeds Rs 50,00,000.
04 June 2022
Yes, if your business was not liable to tax audit in the previous FY, you are not required to deduct any TDS on this payment of Rs. 10 Lacs to be paid to the lawyer. Hence no TAN is required by the individual. If the payment during the FY exceeds Rs. 50 Lacs then TDS to be deducted u/s 194M.
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