Regarding tds deduction on contract

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2016 Hiii everyone
My Uncle is doing Contract service for some atm material provider co. his duty is to provide the Manpower for the installation of atm bodies at various cities for which he gets the amount from company by deducting Tds @ 1% because he is the individual from last many years
But for the Assessment Year 2016-17 the above company has deducted the TDs @ 2% for 75 transactions out of 98 transaction
My doubt is why the company has deducted the tds @ 2% without any change in style of his status (as a individual only ) for this assessment year also
Thanks in advance

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2016 Urgent thanks in advance

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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05 February 2016 TDS is applicable @ 1% u/s 194C. The company has incorrectly deducted TDS @ 2%. Contact the company and ask them to correct their records so that TDS is deducted @ 1% in future. There is no correction for the TDS which has been deducted at higher rate. You can claim the same in your return of income.

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2016 I agree with ur answer sir but that is very reputed company they will also do that type of silly mistake

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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05 February 2016 It is better to contact the company and clarify the doubt. They will provide you the reason for higher deduction.

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