Plz help regarding TDS under 194c for individual

Udgam Koomar (Tax Technologist) (1944 Points)

12 August 2011  

I am an individual working from home for a company as a independent contrator doing their assignment online. Please help me calculate the TDS. They said 1% will be deduced but in relation to IT, what does this mean in terms of returns. In my case, I get 25000/- per month, so in this financial year from April 2011-July2011, i got 100000/- so how will they deduct TDS? Like in this case as per Section 194C, amount above 75000/- attracts 1% so here 25000/- x 1% = 250/= will be the TDS till now,  Is this calculation correct? Please guide through this example.

 

Also what happens to future payments, for eg next month when I get another 25000/-, will 1% of this amount will again be decucted?

 

Also how does this TDS be interpreted in terms of returns. Do i have to fill ITR4 or I can fill this income in ITR2 under other income as till last year i have been filling ITR2.