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Extension of due date of TDS payment under 194M

extension-of-due-date-of-tds-payment-under-194m

Budget 2019 has introduced a new section 194M is introduced under which an individual or HUF, who is otherwise not liable to deduct TDS under section 194 C or 194J), is required to deduct tax at source at the rate of 5 percent if the annual payment made to a contractor or professional exceeds Rs. 50 lakh in a year. It is also proposed that a person deducting tax under this section shall be able to deposit TDS on the basis of the Permanent Account Number (PAN) only without requiring to obtain TAN.


CBDT has issued an order under section 119(2) dated 19.12.2019 to extend the due date for payment of income-tax deducted under the newly inserted section 194M to 31.12.2019.

The due date for issue of TDS certificate in respect of deduction of income-tax under section 194M is also extended to 15.01.2020.

As per the Order, the extension in due dates is only applicable for TDS or tax deducted under section 194M in the month of September 2019 and October 2019.

The provisions of section 194M came into effect from 1st September 2019. The tax deducted in September 2019 is required to be deposited into the government account by 31.10.2019 and the due date for the TDS in October 2019 was 30.11.2019.

Under section 194M an individual or HUF, who is not subject to a tax audit, is required to deduct tax at source at the rate of 5 (five) percent, if the annual payment made to a contractor or professional exceeds Rs. 50 lakh in a financial year. 

Such a person deducting tax under this section shall be able to deposit TDS on the basis of the Permanent Account Number (PAN) only.

However, the requisite utility for payment of the TDS under section 194M and filing of return i.e challan-cum-statement in Form 26QD was deployed on 17.12.2019.

As a result, it was not possible for the taxpayers to deposit the TDS within the due date.

Hence, the Board has now extended the due date for the deposit of tax deducted in the month of September 2019 and October 2019.

Read the full text of the Order.


Circular No. 31/2019

F. No. 370142/18/2019-TPL

Government of India
Ministry of Finance
Department of Revenue
Tax Policy Division
Central Board of Direct Taxes


147B-II, North Block, New Delhi
Dated 19th December, 2019

Subject: Order under section 119(2) of the Income-tax Act, 1961- Extension of the due date of pavment of tax deducted at source under 194M of the Act -reg.

Considering the fact that the utility for payment of tax deducted at source under section 194M of the Income-tax Act, 196I(the Act) was deployed on 17.12.2019, the Central Board of Direct Taxes, in exercise of the powers conferred under 119 of the Act, hereby extends the due date for payment of tax deducted at source under section 194M during the month of September, 2019 and October, 2019 and the due date for furnishing the challan-cum-statement in Form 26QD for the same, from 31.10.2019 and 30.11.2019 respectively to 31.12.2019. Consequently, the due date of furnishing of the certificate of deduction of tax in Form 16D has also been extended for the tax deducted during the month of September, 2019 and October, 2019 to 15.01.2020.



(Ankit Jain)
Dy. Commissioner of Income Tax (OSD)
TPL Division

Download the Order here.

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