Table of Contents
What is the TDS limit for 194C?
TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)
| Section | Nature of payment | Threshold Limit |
|---|---|---|
| 194B | Winning from lotteries | 10000 |
| 194BB | Winning from Horse race | 10000 |
| 194C | Contractor-Single transaction-Individual/HUF -Others | 30000 |
| 194C | Contractor – Consolidated Payment During the F.Y. – Individual/HUF – Others | 100000 |
How is TDS calculated on 194C?
1,00,000/- hence TDS will be deducted….How to calculate TDS under section 194C?
| 194C TDS calculation | |
|---|---|
| Particulars | Amount |
| Total payment | 1,08,000 |
| TDS @ 1\% | 1080 |
| Net payment on 20-12-2019 (28,000-1,080) | 26,920 |
How is TDS calculated on contractors?
TDS is required to be deducted @1\% on the whole amount as the total payment in the year exceeds Rs 75,000. Example 2 – In the above example if the contractor A is a Partnership Firm in place of individual. TDS is required to be deducted @ 3\% as the sum exceeds the threshold limit of Rs 30,000 in single payment.
Which of the following contracts are not covered under section 194C?
194C shall not apply to contract for sale, it has been provided that “work” shall not include manufacturing or supply a product according to the requirement or specification of a customer by using raw material purchased from a person other than such customer as such a contract is a contract for `sale’, please refer …
Who is responsible for tax deduction u/s 194C?
Section 194C Explained According to the Section 194C of the Income Tax Act, any individual making a fee to a residential individual, who carries out ‘work’ as a contract between the ‘specified individual’ and the ‘resident contractor,’ is obliged and required to deduct TDS (Tax Deducted At Source).
Which ITR form for 194C?
ITR3
Form 26AS tells which Income Tax Return Form you need to choose to file ITR
| S.No | If TDS is deducted under section | Type ITR form to be used for filing of Return |
|---|---|---|
| 4 | 194B, 194BB | ITR2 |
| 5 | 194C | ITR3 |
| 6 | 194D | ITR3 |
| 7 | 194H | ITR3 |
Who is liable to deduct TDS under 194C?
resident contractor
Section 194C Explained According to the Section 194C of the Income Tax Act, any individual making a fee to a residential individual, who carries out ‘work’ as a contract between the ‘specified individual’ and the ‘resident contractor,’ is obliged and required to deduct TDS (Tax Deducted At Source).
What is contract under 194C?
IS 194C applicable on purchase of goods?
194C is not applicable to transactions of purchase of goods.
Where can I show 194C income in ITR?
Show 194C income u/s 44AD.