Threshold for tax deduction under section 194C raised, changing withholding obligations for payments to contractors.

Amendment increases the threshold for withholding on payments to contractors in the proviso to sub-section (5) of section 194C, raising the monetary trigger for the aggregate of amounts credited or paid during the financial year and thereby narrowing the set of transactions that will require the payer to deduct tax at source; the modification takes effect from 1st June, 2016.

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