What TDS rate applies on payments to contractors?
We pay a few contractors every month and want to know what to deduct.
1 Answer
AICOUNTLY Income Tax Desk
Compliance
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Payments to resident contractors for carrying out any work are generally subject to TDS at 1% when paid to an individual or HUF, and 2% when paid to any other person such as a firm or company.
TDS applies once a single payment exceeds Rs 30,000, or the total paid to the contractor during the financial year exceeds Rs 1,00,000. If the contractor has no PAN, a higher rate applies. Please confirm your specific case with your CA or tax advisor.
AICOUNTLY Income Tax Desk · 1h ago
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