Central Board of Direct Taxes had extended the due date of payment of Section 194M TDS

The Central Board of Direct Taxes had extended the due date for TDS payment under section 194M and furnishing Form 26QD from 31st October/ 30th  November 2019 (for September/ October 2019) to 31st December 2019, that is, the interest on delayed TDS payment is waived because of the delayed deployment of relevant utility. Furthermore, the due date of furnishing TDS certificate (Form 16D) has also been extended up to 15th January 2020.

The circular issued by the CBDT on 19th December 2019 stated the Order under section 119(2) of the Income-tax Act, 1961 which specifies the extension of the due date relating to the payment of tax deducted at source under 194M of the Act.

While considering the information that the utility for payment of tax deducted at source under section 194M of the Income-tax Act, 196I has been deployed on 17th December 2019, the Central Board of Direct Taxes (CBDT), in exercising the powers which has been conferred under 119 of the Act, had extended the due date for payment of tax deducted at source under section 194M in the month of September 2019 as well as October 2019 and the due date for providing the challan-cum-statement in Form 26QD for the same, from 30st October  2019 and 30th November 2019 respectively to 31st December 2019. Subsequently, the due date of providing of the certificate of deduction of tax in Form 16D was also extended for the tax deducted during the month of September, 2019 and October 2019 to 15th January 2020.

What is Section 194M?

A person and/or Hindu undivided family (HUF) are required to deduct tax at source under Section 194M. Such persons and HUF shall not be required to obtain their books of accounts audited. Books of Accounts are needed to be audited if total turnover or receipts of business go beyond Rs 1 crore or where receipts of a profession go beyond Rs 50 lakh.
It is applicable when the entire sum paid towards a resident individual, for conducting any contractual work or furnishing any professional service, in a fiscal year goes beyond Rs 50, 00,000.

If they are requisite to get Books of Accounts audited, TDS deduction is applicable according to Section 194C and 194J. The person and/or HUF are required to deduct TDS under Section 194C (TDS on payment to a contractor) as well as 194J (TDS on payment on professional fees) shall not be required to deduct tax at source under Section 194M.
A person or HUFs who are required to deduct tax could pay the tax towards the government through quoting his or her PAN only. It is not obligatory in order to obtain a tax deduction account number (TAN) for TDS deduction.

The payments towards non-residents are not covered under this section.

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eStartIndia Team