Tds on contracter 194c

TDS will be applicable from FY 22-23 when you opt for audited accounts.

If the payment for house construction is made by a company, TDS  is required to be deducted under section 194C of the IT Act, if the total payment made or to be made to the contractor exceeds Rs. 1 lakh in a FY.

The TDS rate for payments to contractors under section 194C is 1% for individuals and  HUF and 2% for other entities. 

If the payment is made by an individual, TDS is not required to be deducted under section 194C, provided the individual is not liable to get audited under section 44AB of the Act.