As per the existing provisions, TDS under section 194C (TDS on contracts), section 194H (TDS on commission or brokerage) and 194J (TDS on professional services) is to be deducted by the assessee including individual or HUF whose total sales, gross receipts or turnover from the business or profession carried on by him exceed one crore rupees in case of business or fifty lakh rupees in case of profession during the previous financial year.
W.E.F. Finance Act 2019 (Part 2) a new section 194M has been inserted wherein it is stated that any person who is an individual or HUF who is required to deduct TDS u/s 194C or 194H or 194J but whose business turnover is less than INR 1 crore or whose professional receipts are less than INR 50 lakhs are required to deduct TDS on such payments at 5%. Provided the amount to be paid individually or in aggregate should be greater than INR 50 lakhs. Further, the provisions of section 203A shall not apply to the person who is required to deduct tax in accordance with the provisions of this section.
