TDS on payment to resident contractors and professionals Section194M A New Section 194M is inserted on 24 December 2019 in The Income Tax Act, 1961 ['The Act'] vide Finance Act, 2019. -> Levy of TDS at the rate of 5% on the sum paid or credited in a particular year on account of contractual work or professional fees by an individual or a Hindu undivided family (HUF) -> If aggregate of such sums exceeds INR 50,00,000/- in that year. -> The said Section does not apply to an Individual or HUF who is required to deduct TDS as per the provisions of Section 194C, 194H or 194J of the Act. -> Individuals or HUFs can deposit the tax deducted using their PAN and is not required to obtain TAN. -> Before 01/09/2019, There was no liability on an individual or HUF to deduct TDS on any payment made to a resident contractor or professional when it is for their personal use. NOW, FROM 01/09/2019 ONWARDS, IF INDIVIDUAL OR HUF [ WHO ARE NOT A