Tds on payment to contractors sec 194C

This discussion clarifies the Tax Deducted at Source (TDS) rates applicable under Section 194C for payments made to contractors. For individuals and HUFs, the standard TDS rate is 1%, while for companies and firms, it's 2%. Special reduced rates of 0.75% and 1.5% respectively were in effect from May 2020 to March 2021. If a contractor fails to provide their PAN, a higher TDS rate of 20% will apply.