TDS u/s 194C payment to Contractors

Hey Akanksha, 50000 is not an exemption limit. If collective payments or credits during the financial year does not exceed Rs. 50000, there is no need to deduct a tax at all. But if the same exceeds 50000, you need to deduct the tax on whole amount from 1st rupee. At the begining of the year, some contracts, we dont know whether the amount payable or to be credited will exceed Rs. 50000 or not. Hence, this is the facility given to the deductor for making the deduction. Also where you make a single payment or single credit of more than 20000/- you need to deduct tax immediately.

I hope u are now satisfied with the answer.

TDS should be mad on entire Rs.52000

What is the rate of late payment of TDS on contractor