financial services

How TDS is deducted under Section 194C?

Whenever a payment is made, TDS should be deducted. The rate at which TDS is deducted depends on the nature of the payment. Here we will tell you about the how TDS is deducted under section 194C which mainly focuses on the TDS deducted on payment made to the Contractor or the Sub-contractor.

TDS-ON-CONTRACT

Income tax Refund Android App Click Here

What is Section 194C?

Income Tax Refund APP IOS APP Click HERE…

tds rate chart fy 2017-18.png

Any individual who is paying any sum of amount to a resident contractor to carryout some work must deduct the required TDS amount on the payment made to the contractor under Section 194C.

Filing Income Tax Return

Here are the rates at which TDS is deducted under Section 194C: –

  • 1% if the payment is made to an individual or a HUF
  • 2% in all the other cases except for individuals and HUFs.

How is TDS Deducted on the Payment made to Sub-Contractor?

ccf-tds.jpg

TDS is deducted under Section 194C

 

TDS is deducted under Section 194C

In case a payment is made to any resident Sub-Contractor, in order to carry out a contract with the Sub-Contractor or to carry out supply of labourers. When the whole or a part of work is being carried out by the contractor. In all these cases TDS must be deducted at the rate of 1% on the gross amount of receipt at the time of payment in cash, cheque or DD or by any other mode of payment.

All India ITR Login | Start Filing Income Tax Return

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s