What is the threshold limit for 194C?
What is the threshold limit for 194C?
INR 1,00,000
In a scenario where, credit or payment to a contractor under TDS Section 194C is below TDS threshold limit of INR 1,00,000 in aggregate in a financial year and single transaction threshold limit INR 30,000, TDS will not be deducted.
Who is required to deduct TDS u/s 194C?
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.
How can I check my threshold limit for TDS?
The amount of payment upto which no TDS required is called the threshold limit. Only if the payment exceeds the prescribed limit, then TDS provisions will be applicable. For example, as per the provisions of Section 194J, no TDS required to be deducted if payment of professional fees do not exceed Rs, 30,000/-.
Who is applicable for TDS?
The Finance Act 2020 specifies that All individuals & HUF will be liable to deduct TDS if the revenue exceeds Rs. 1 Crore in the case of corporation and Rs. 50 Lakhs in the case of the profession in the previous year. Such revisions shall take effect from 1 April 2020.
Who is exempt from deducting TDS?
The TDS rate has to be taken as per the relevant section provided in the Income Tax Act, 1961. TDS is exempted in the following 2 cases: If the receiver gives a self-declaration saying that he had made the required investments in FORM 15G/15H or. There is a certificate of exemption given by the Assessing Officer.
What is Section 194C of income tax Act?
Section 194C states that any person responsible for paying any sum to the resident contractor for carrying out any work (including the supply of labor), in pursuance of a contract between the contractor and the following: The Central Government or any State Government.
On which items TDS is applicable?
Given below are some of the TDS rates on salaried and non-salaried payments for ongoing FY 2021-22:
| Nature of Payment | Section | TDS Rate (%) |
|---|---|---|
| Commission/Brokerage received except for insurance commission | 194H | 5 |
| Rent of Plant/Machinery /Equipment | 194-I(a) | 2 |
| Rent of Immovable property | 194-I(b) | 10 |
Is proprietor liable to deduct TDS?
you are not liable to pay TDS, as you are sole proprietor , the profit you earned after deducting expense is your income, on that you have to pay tax. you are required to pay advance tax.
