What Is The Limit Of TDS Deduction On Contractor?

Can we deduct TDS at higher rate?

One important care to be taken by the recipient of income is to supply his/her PAN to the deductor because in the absence of PAN, the deductor may deduct TDS at the higher of rates prescribed in the Act or rates in force or 20% under the provision of section 206AA of the Act..

Can we deduct TDS on freight charges?

04 December 2019 TDS is to be deducted u/s. 194C on freight charges paid if single payment exceeds Rs. 30000/- and yearly payment exceeds Rs. … When threshold limit exceeds, TDS is to be deducted for the whole amount ( Ie TDS not deducted eralier ( as the amount is within threshold limit at that time+ current payment).

What is the TDS rate on salary?

TDS Rate ChartAnnual IncomeTax RatesUp to Rs.2,50,000NilRs.2,50,001-Rs.5,00,0005%Rs.5,00,001-Rs.10,00,000Rs.12,500 + 20% of income above Rs 5 lakhsAbove Rs.10,00,000Rs.1,12,500 + 30% of income above Rs 10 lakhs

What is the percentage of TDS which is deducted for contractors?

20%Nevertheless, if someone fails to furnish the PAN, the Deductor would be required to deduct TDS at 20%, which is the maximum marginal rate….Rate Of TDS On Payment To Contractor Under Section 194c:ParticularsRate of TDSPayment to an individual or HUF1%Payment to a person other than an individual or HUF2%

What is the threshold limit for 194c?

Rs. 30,000Hence, the threshold limit for section 194C is Rs. 30,000 in case of a single-bill or Rs. 1,00,000 in aggregate for a financial year. If tax is not deducted in one bill since the bill or invoice is below the threshold limit but at a later date the aggregate amount exceeds Rs.

Can TDS be paid without tan?

The buyer of any immovable property need not obtain a TAN (Tax Deduction Account Number) for making payment of the TDS on immovable property. You can make the payment using your PAN.

What is the current rate of TDS on contractor?

0.75 1.5TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)SectionNature of paymentApplicable from 14/05/2020 to 31/03/2021194BWinning from lotteries30194BBWinning from Horse race30194CContractor-Single transaction-Individual/HUF -Others0.75 1.5194CContractor – Consolidated Payment During the F.Y. – Individual/HUF – Others0.75 1.549 more rows

What happens if TDS is not deducted?

For delay/non-deduction of TDS, an interest of 1% per month or a part thereofon the amount of such tax from the date on which it was deductible, to the date on which it is deducted is required to be paid; … And for delay in filing of TDS returns a late filing fee of Rs.

Who is liable to deduct TDS on contractor?

Basic provisions of section 194C of the Income Tax Act Section 194C of the Income Tax Act states that any person making payment to a resident person, who is carrying out any ‘work’ in terms of the contract between the ‘specified person’ and the resident contractor, is required to deduct TDS.

What is the rule for TDS deduction?

TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5% to 30% which is equivalent to the applicable income tax slabs.

How is TDS calculated?

Here’s how an individual can calculate TDS on income: Add basic income, allowances and perquisites to calculate gross monthly income. Compute the available exemptions under Section 10 of the Income Tax Act (ITA) … Multiply the number obtained from the above calculation by 12, as TDS is calculated on yearly income.

Is TDS deduction mandatory?

Under Section 192 of the Income Tax Act, every employer who is paying a salary income to his employee is required to deduct TDS from the salary income if it exceeds the basic exemption limit. … Since TDS deduction is compulsory, it is important to understand the rate of such deduction and how such deduction happens.

How can I deduct TDS on contractor?

Minimum Amount of Payment for Deduction of TDS under Section 194C. If the payment that is being made to the contractor does not exceed Rs. 30,000, No TDS on payment to contractor is required to be deducted. However, if the total of all such payments made or to be made during a financial year exceeds Rs.

What is TDS slab rate?

TDS Rates Applicable for a Domestic CompanyTDS Rate (%)TDS Rates from 01.04.2020 to 13.05.2020TDS Rates from 14.05.2020 to 31.03.20215 (w.e.f 01.06.2016) (10 % from 01.04.2015 to 31.05.2016)53.752 102 101.5 7.51 5 (w.e.f from 01.06.2017) (If payment of Rent exceeds Rs. 50,000/- per month. ) 101 5 100.75 3.75 7.51011 more rows•Sep 29, 2020