Home > TDS > TDS On Resident Contractors and ProfessionalsLast Updated: Feb 21st 2023
Form 26QD is a challan-cum-return statement for reporting the transactions liable to TDS on payments to Resident contractors and professionals u/s 194M of Income Tax Act, 1961
For quick and efficient collection of taxes, the Income-tax Law has incorporated a system of deduction of tax at the point of generation of income. This system is called as “Tax Deducted at Source”, commonly known as TDS.
The Finance Act 2019 introduced TDS on Payments to Resident contractors and professionals at the rate of 5% where the amount or aggregate of such amounts paid to a resident in financial year exceeds Rs 50 lakhs
Mr Krishna has purchased a property for residential purpose and he has given the Interior decoration services to Mr Lakshman for Rs 60 lakhs. In this case, Mr Krishna is required to deduct TDS u/s 194M
For Understanding Learn More On @ Section 194M
Mr Krishna has paid Rs 60 lakhs to Mr Lakshman on Dec 15th 2022. He has deducted 5% TDS i.e.,3,00,000. He is required to file Form 26QD by Jan 30th 2023.
It is advised to have all the above information handy before start filling the form as you have to complete within 30 mins from the start