TDS 194M - Payment by Individual

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This query is : Resolved

H Thakar (Querist)

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)

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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