tds

TDS on Contractor Payments: Section 194C

Understanding TDS on payments to contractors under Section 194C including rates and compliance.

GetYourCA Team
1 March 2025·Updated 9 April 20261 min read12.5K views

TDS on Contractor Payments: Section 194C

What is Section 194C?#

TDS on payments to contractors.

Applicability#

  • Payment to contractors
  • Sub-contractors
  • Carriage contractors

TDS Rates#

  • 1% for individual/HUF
  • 2% for others
  • 20% if PAN not provided

Threshold#

  • Single payment: ₹30,000
  • Aggregate in FY: ₹1 lakh

TDS Certificate#

  • Form 16A
  • Due within 15 days of TDS

Conclusion#

Contractor payments require TDS compliance.

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GetYourCA Team

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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