TDS U/S 194M & FORM 2QD

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If you're an individual making payments to a resident contractor exceeding £50 lakh in a financial year, you must deduct TDS at 5% under Section 194M on the total amount paid. You'll need to file Form 26QD for each month in which a payment is made after crossing the £50 lakh threshold. It's not possible to combine payments from different months into a single Form 26QD submission.

H Thakar

H Thakar (Querist)
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07 May 2022 I am individual and I have paid Rs 30 Lakhs to packers & movers and also will be paying equivalent or higher amount in current FY. I have not deducted TDS earlier u/s 194M. But after paying 2nd instalment of the same i will excees the treshold limit of Rs 50 lakh i.e. payment to resident contractor. I will be deducting tds @ 5 % excluding GST on total amount that is 30+50 i.e. Rs 4 Lakhs and will be filing form 26QD.

Further there is also chances for more remittance. So i need more clarification regarding filing of Form 26QD.

Do i need to file form 26QD each time for all subsequent payment?

CA Puja Sharma

CA Puja Sharma (Expert)
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07 May 2022 The TDS deducted u/s 194M during a month must be paid by the 7th of the following month(for non-government entities) through Challan cum statement in Form 26QD.
The person who deducts tax under section 194M shall furnish a certificate under Form no. 16D within 15 days of the due date of giving the challan cum statement in Form 26QD.

H Thakar

H Thakar (Querist)
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07 May 2022 Dear Madam
Thank you for your response, but you didn't got my point. what you replied is the due dates and process for payment.

here the case is subsequent payment in current FY . i.e. one is done in April other will be done in May and also can be in further period.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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02 August 2025 Thanks for the clarification — you're absolutely right to ask about **repeated payments** under **Section 194M** and the filing requirements of **Form 26QD**.

Let’s break it down precisely for your situation.

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## ✅ **Section 194M – Quick Overview**

* Applies to **individuals or HUFs not required to deduct TDS under 194C, 194H, 194J** due to not being in business/profession liable to audit.
* If you pay a **resident contractor**, professional, or commission agent **> ₹50 lakh in a financial year**, you must deduct **TDS @ 5%** under **Section 194M**.
* **TDS applies on the *entire amount*, not just the excess over ₹50 lakh.**

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## 🧾 **Your Scenario:**

* You paid ₹30 lakh earlier (no TDS then).
* You are now paying a second installment of ₹50 lakh (which pushes your total payment to ₹80 lakh).
* You plan to deduct **TDS @ 5% on ₹80 lakh = ₹4 lakh**, and file **Form 26QD**.
* You expect to make **more payments** later.

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## 📌 **Do You Need to File Form 26QD Again for Future Payments?**

### ✅ **Yes, Form 26QD must be filed for each instance/month in which payment is made (after crossing ₹50 lakh)**.

### Here's how it works:

| Payment Month | Payment Amount | TDS Applicable | Form 26QD Required? |
| ------------- | -------------- | ------------------------------ | ------------------------------------------ |
| April | ₹30 lakh | ❌ No TDS (below ₹50L till now) | ❌ No |
| May | ₹50 lakh | ✅ ₹4 lakh (on ₹80L total) | ✅ Yes, file 26QD for May |
| July | ₹10 lakh | ✅ ₹50,000 (5% of ₹10L) | ✅ Yes, file 26QD for July |
| Future months | Any amount | ✅ 5% of each amount | ✅ Yes, file 26QD for each month of payment |

> 💡 You **cannot club** future payments into a single 26QD unless they fall in the **same month**.

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## ⏳ **Timeline & Filing Responsibility**

* **TDS Payment & Form 26QD**: By **7th of the next month** after deduction.
* **Form 16D (TDS Certificate)**: Within **15 days from due date** of Form 26QD.

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## 🧮 **Correction Tip (if you already paid ₹30L without TDS):**

If you've paid ₹30 lakh earlier **without deduction**, and now TDS becomes applicable on the **total ₹80 lakh**:

* Deduct TDS for full ₹80 lakh **now**.
* File **Form 26QD** for **May** for ₹4 lakh.
* There is **no need to file 26QD for the April payment separately**, since TDS wasn't required then, and the liability arises only **now** under 194M.

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## ✅ Summary:

| Question | Answer |
| ------------------------------------------------------- | -------------------------------------------------- |
| Do I need to file Form 26QD every time I pay post ₹50L? | ✅ Yes, **for each month** of payment |
| Can I club multiple payments in one 26QD? | ❌ Only if payments are in the **same month** |
| Is TDS on total ₹80L or only on ₹30L (above threshold)? | ✅ On **full ₹80L**, once threshold is crossed |
| Do I need to file Form 26QD for April (₹30L)? | ❌ No, since threshold not crossed then |
| What if I make more payments later? | ✅ File fresh Form 26QD for each such payment month |

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Let me know if you’d like a sample **Form 26QD filling guide**, or if you want to see **how to generate Form 16D**.

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