Executive
8960 Points
Joined August 2011
The purpose of TDS under Section 194C is to ensure that the income earned by contractors and sub-contractors is taxed at the time of receipt, rather than at the time of assessment. This helps the government in collecting tax revenue on a timely basis and helps to prevent tax evasion.
TDS is deducted at the rate specified by the Indian tax authorities, which is typically 1% for individuals and 2% for companies, subject to certain conditions.