How many deduct tds of a proprietor under 194c ( 1% or 2% )

respected all,

i want know how many deduct tds of proprietor under 194c. his forth alphabet character is p. that means i deduct 1 % tds. please let me know.

 

Replies (5)
Quick Summary
This discussion clarifies the TDS rate applicable to proprietors under Section 194C of the Income Tax Act. It confirms that if the proprietor's PAN's fourth character indicates 'P', the TDS rate should be 1%. This is because a proprietorship is not a separate legal entity and is treated as an individual for tax purposes, using the proprietor's PAN.

Yes, 1% TDS will be applicable.

Read relevant sections of 194 and revert back.

but one of my friend said that only individual and HUF applicable for 1% not proprietor . ??????? 

Proprietorship’s are not a separate legal entity. Proprietor PAN is used for his business. So, It should be treated as Individual.

Rate at which you are deducting TDS is right

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