TDS 194C - Applicable on Payment to advertising

TDS (Tax Deducted at Source) under section 194C of the Income Tax Act is applicable on payment made to advertising agencies.

Section 194C of the Income Tax Act applies to any payment made to a contractor or sub-contractor for carrying out any work including advertising, broadcasting and telecasting, and other similar activities.

As per the provisions of section 194C, if the payment made to the advertising agency exceeds Rs. 30,000 in a financial year, TDS is required to be deducted under Section 194C of the Income Tax Act 1961 at the rate of 1% or 2% (as the case may be) for payments made to residents.

However, if the payment is made to an individual or HUF and the total payment does not exceed Rs. 1 lakh in the financial year, then TDS is not required to be deducted under section 194C.