Section 194C of ITA, 1961 : Section 194C: Payments To Contractors

ITA, 1961

JavaScript did not load properly

Some content might be missing or broken. Please try disabling content blockers or use a different browser like Chrome, Safari or Firefox.

Explanation using Example

Imagine a construction company, BuildCon Pvt. Ltd., has been awarded a contract by the local municipal corporation to construct a new public library. The contract is worth 5 million rupees, and as per the agreement, BuildCon will receive progress payments as the work advances.

When the municipal corporation processes the first payment of 1 million rupees to BuildCon, it is required by Section 194C of the Income-tax Act, 1961, to deduct tax at source (TDS) from this payment. Since BuildCon Pvt. Ltd. is a company, the applicable TDS rate is 2% of the payment amount. Therefore, the municipal corporation will deduct 20,000 rupees (2% of 1 million) and remit it to the government as T...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.

🚀 Special Offer! Enjoy 1 Year of Ad-Free Browsing with any subscription.
KanoonGPT is now faster and smarter, powered by upgraded servers.
Subscribe today and unlock all new features!
Update: Discover how KanoonGPT revolutionizes legal research! Watch our demo video on the homepage to see how you can chat with various legal sections using our innovative hybrid AI search. Enjoy free unlimited AI access for a limited time!
Update: Page bookmarking and open in new tab is now supported! Simply use your browser's bookmark manager to save this page for quick access later.
Update: We're building AI tools for the Indian Law community. Help shape the future by filling out this quick form for a chance to get a free 1-year usage of the requested tool.

Download Digital Bare Acts on mobile or tablet with "Kanoon Library" app

Kanoon Library Android App - Play Store LinkKanoon Library iOS App - App Store Link