what do you know about 194Q TDS?

Question

Accepted Answer

194Q TDS is a provision under the Income Tax Act where TDS is deducted on payment made to resident contractors and professionals.

194Q TDS applies to individuals and HUFs who are not required to get their accounts audited.
TDS is deducted at the rate of 1% on payment exceeding Rs. 50 lakhs in a financial year.
The deductor is required to obtain the Tax Deduction and Collection Account Number (TAN) and file TDS returns.
Non-compliance with 194Q TDS provisions can attract penalties.

Accepted Answer

Sec 194Q applies to purchases exceeding of both Revenue & Capital goods, The TDS Deduction on purchases exceeding the value of 50 lakhs towards a PAN in a FY will be 0.1% , if the seller doesn't have PAN the deduction will be made at a higher rate of 5%,

what do you know about 194Q TDS?

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