I GET CONTRACTOR BILL OF RS 4000.IT CAN OR CANNOT EXCEED 2LAKH YEARLY PAYMENT.WHAT SHOUD I DO.IF I DONT GET ANY BILL AMONUT 30000 IN YEAR.CAN I PAY TDS YEARLY OR SHOUD I DEDUCT YEARLY AMOUNT?

This discussion addresses a common query regarding Tax Deducted at Source (TDS) for contractor payments. The user received a bill of Rs 4000 and is unsure if their yearly payments can exceed Rs 2 lakh. The advice provided clarifies that TDS is applicable when the aggregate payment to a contractor exceeds Rs 1 lakh in a financial year. If individual payments are below Rs 30,000 and the total for the year is under Rs 1 lakh, TDS may not be required.