TDS Section 194C — Payment to contractor / sub-contractor
FY 2025-26 · Rate 1% (individual/HUF) or 2% (others)
What does this section cover?
TDS on payment to contractor for work contracts including advertising, broadcasting, transport, catering, manufacturing per customer specs.
Why this section: Work-contract payments above threshold require TDS — 1% if payee is individual/HUF, 2% for companies and others.
Key facts
- Threshold
- ₹30,000 single payment or ₹1,00,000 aggregate per FY (raised from ₹75k aggregate by Finance Act 2025)
- Applicable for
- FY 2025-26
- Who deducts
- Companies, firms, individuals/HUFs (if turnover > ₹1 cr business / ₹50 L profession in prev FY)
- Paid to
- Contractor (individual, HUF, firm, company)
- Statutory source
- Section 194C, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 194C is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.
Related TDS sections
Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.
Need a different section?
Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.
Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.