Tds on payment to contractors sec 194C

In the case of Proprietor/HUF tds to be deducted at the rate of 1 percent and in the case of company/firm tds to be deducted at 2 percent.

From 14.05.2020 rates are

0.75 % for Individual , HuF

 1.5 % for Firm, Companies

TDS rate reduced by government from 14.05.20 to 31.03.21

For individual or HUF - 0.75%

For other - 1.50%

When provisions of section 194C of the Income Tax Act gets attracted, the Deductor is required to deduct TDS at the following rates –

ParticularsRate of TDSPayment made / credited to an individual or HUF1%Payment made / credited to a person other than an individual or HUF2%

However, in case the PAN is not furnished, the Deductor would be liable to deduct TDS @ 20% i.e. at the maximum marginal rate.