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Tds on payment to contractors sec 194C

vineeth Kandukuri (2 Points)

28 November 2020

how much tds is to be deducted in case of sec 194C

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gameplaysNmore (96 Points)
Replied 28 November 2020

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.

Pallavi P (Job) (151 Points)
Replied 28 November 2020

From 14.05.2020 rates are

0.75 % for Individual , HuF

1.5 % for Firm, Companies

JATINDER KUMAR (Accountant) (3662 Points)
Replied 28 November 2020

TDS rate reduced by government from 14.05.20 to 31.03.21

For individual or HUF - 0.75%

For other - 1.50%

Krishna Chaudhary (Accountant) (4531 Points)
Replied 16 January 2021

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.

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