Tds on contract section 194c

This discussion clarifies the Tax Deducted at Source (TDS) applicable under Section 194C for contract payments. It highlights that the TDS rate for payments to individuals is 1%, while for non-individuals (like companies), it's 2%. The thread confirms that while a company can technically deduct more than 1% for an individual, it is legally mandated to deduct only 1% as per income tax provisions. Refusing to deduct more than the prescribed rate is permissible.