Withholding on contractor payments: increased threshold for deduction, raising single-transaction and aggregate limits effective July 2010.

Amendment to Section 194C raises the non-deduction limit for a single contractor payment from twenty thousand rupees to thirty thousand rupees and increases the aggregate-year deduction threshold from fifty thousand rupees to seventy-five thousand rupees; the payer must deduct tax when the revised aggregate threshold is exceeded, effective from 1st July, 2010.

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