TDS 194M - Payment by Individual

This query is : Resolved

H Thakar (Querist)
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20 May 2026 Is there any change in existing TDS rate for section 194M under income tax act 1961 corresponding section 393(1) (Sl No 6(ii).

As of now it is 2% (reduced from 5%, wef 01.10.24)

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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20 May 2026 Given the complexity of corporate land ownership and personal tax exemptions, this is a specialized matter. You should consult with a Chartered Accountant to evaluate your specific documentation. They can determine if there is any viable, legally compliant restructuring (such as a conveyance of land or specific development agreements recognized under tax law) that could potentially allow for a tax-efficient outcome, though, under standard conditions, this arrangement would not qualify for Section 54 benefits.

The TDS rate under Section 194M is currently 2% (reduced from 5% in October 2024). Regarding the Section 54 exemption, you likely cannot claim it for a house built on company-owned land, as the law requires the residential property to be in your name. Please consult a professional to review your specific case.

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