What is the TDS rate on contractor?

December 14, 2020 Off By idswater

What is the TDS rate on contractor?

Thus, the rate of TDS from payments made by the government or other specified persons to any contractor will be 2% or 1% of the gross payment or, as the case may be, the net payment, depending on the terms of the contract. The rate is 1.5% or 0.75% for transactions from 14 May 2020 until 31 March 2021.

What is the TDS rate for professionals?

Section 194J TDS on Professional or Technical Fees

Nature of payment Threshold limit Rate of tax
Fees for professional services Rs. 30,000 10%
Fees for technical services and payment to call centers Rs. 30,000 2% (for FTS- 10% upto FY 19-20)
Remuneration or fees to Director (other than 192) NIL 10%
Royalty Rs. 30,000 10%

What is the limit of TDS deduction on contractor?

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

What is the TDS rate for Labour charges?

TDS on labour charges is required to be deducted under Section 194C of Income Tax Act 1961 at the rate of 1% or 2% (as the case may be) for payments to residents.

What is new TDS rate?

TDS on payments to contractors or professional services varies from 1-10%, sale of immovable property attracts 1% TDS on the sale consideration and for rent, the applicable TDS is 5%. What is the change from July 1 on TDS? New provisions introduced in the Union budget 2021-22 come into effect from July 1.

What is rate of TDS on rent for FY 2020 21?

What is the Rate of TDS?

S. No Nature of Payment TDS rate from 14 May 2020 until 31 March 2021
1 Rent of plant and machinery 1.5%
2 Rent of land or building or furniture or fitting 7.5% (3.75% if rent exceeding Rs 50,000 / month is paid by individual/HUF who are not liable for tax audit)