Here’s how you need to deduct TDS u/s 194M without TAN: New TDS Form 26QD introduced for TDS u/s 194M:

written by Income tax Expert | November 23, 2019

CBDT vide notification Dt. 18.11.2019 has notified Form No. 26QD to be filed to deduct TDS u/s 194M of the Income Tax act.

Section 194M is applicable on an individual/ HUF who are not liable to deduct TDS u/s 194C, 194H or 194J and who takes a service mentioned u/s 194C/H/J and amount of such service from a person is above Rs. 50 lakh during a year. You can read more here: Section 194M.

Form 26QD is same as earlier Form 26QB or QC (i.e. for deduction of TDS u/s 194IA and 194IB) where this is a challan cum return and you need to file it with your PAN number or Aadhar number and you don’t need to apply for TAN number to file such TDS return. This return itself is the challan to pay the TDS amount.

You need to file TDS return u/s 194M within 30 days from the end of the month in which TDS was deducted and you need to deduct TDS at the time of payment of amount or credit whichever is earlier if the amount during the year goes above Rs. 50 lakh.

Now the condition here is same as any other section i.e. 194C or 194J that you’ll have to decide whether the amount during the year would exceed Rs. 50 lakh because if it does later you would be liable to pay interest u/s 201(1A) on earlier amount paid to such person on which TDS was not deducted, so always try to project whether the amount would exceed Rs. 50 lakh or not and if you think it will exceed always deduct TDS on each payment.

Also, every person responsible for deduction of tax under section 194M shall furnish the certificate of deduction of tax at source in Form No.16D to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No.26QD under rule 31A after generating and downloading the same from the web portal.

Still Form 26QD has not been notified but once its notified you can fill the Form and pay tax from here: Form 26QD

You can read the entire circular as below:

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