TDS-194M Contract
This query is : Resolved
Quick Summary
Ashish Kumar Pandey
(Querist)
11 April 2025
Dear Sir,
Mr. A is a resident and liable to deduct TDS u/s 194M
Mr. A given a contract to Mr. B for house construction of Rs. 88.00 Lacs on Nov-2024.
Mr. A paid of Rs. 62.00 Lacs to Mr. B in FY 2024-25 and deduct TDS @2% u/s 194M.
Now
Mr. A paid balance payment to Mr. B of Rs. 26.00 Lacs as full & final in April 2025.
TDS deduct or not in balance payment of Rs. 26.00 Lacs as per 194M
due to Payment year change.
Mr. A is a resident and liable to deduct TDS u/s 194M
Mr. A given a contract to Mr. B for house construction of Rs. 88.00 Lacs on Nov-2024.
Mr. A paid of Rs. 62.00 Lacs to Mr. B in FY 2024-25 and deduct TDS @2% u/s 194M.
Now
Mr. A paid balance payment to Mr. B of Rs. 26.00 Lacs as full & final in April 2025.
TDS deduct or not in balance payment of Rs. 26.00 Lacs as per 194M
due to Payment year change.
11 April 2025
As the balance payment of ₹26,00,000 does not exceed the threshold of ₹50,00,000 in FY 2025-26, no TDS deduction is required on this payment under Section 194M due to the change in financial year.
Ashish Kumar Pandey
(Querist)
11 April 2025
Thanks Sir for your reply,
If in other condition
Mr. A further contact place to Mr. B in FY 2025-26 of Rs. 40.00 Lacs and paid
Then TDS 194M applicable on full amount 26+40 Lacs or TDS not applicable in FY 2025-26due to new contract below Rs. 50 Lacs Limit.
If in other condition
Mr. A further contact place to Mr. B in FY 2025-26 of Rs. 40.00 Lacs and paid
Then TDS 194M applicable on full amount 26+40 Lacs or TDS not applicable in FY 2025-26due to new contract below Rs. 50 Lacs Limit.
11 April 2025
TDS will be applicable as the payment in the FY will exceed the threshold limit.
Ashish Kumar Pandey
(Querist)
11 April 2025
Thanks Sir,
If Mr A Purchase Tiles of Rs. 55.00 Lacs from Mr. X and paid within year.
Then TDS 194M applicable or not due to material purchase.
If Mr A Purchase Tiles of Rs. 55.00 Lacs from Mr. X and paid within year.
Then TDS 194M applicable or not due to material purchase.
11 April 2025
No. The section is applicable over the services. For material purchase sec. 194Q is required to be analyzed.
29 September 2025
Good luck..
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