TaxTMI 
TaxTMI 
TaxTMI 
dear sir ,
i would like to know the provisions of section 194C of Income Tax Act.whats the percentage of income tax for individual contractors and the firms doing the contract works.
chakravarthy.s.n.
194 c of income tax
sid chakravarthy
Understanding TDS Rates under Section 194C: 1% for Individuals/HUFs, 2% for Firms/Entities Based on Deductee Status. A forum participant inquired about the provisions of Section 194C of the Income Tax Act, specifically the tax deduction rates for individual contractors and firms. Three responses clarified that the Tax Deducted at Source (TDS) rate is 1% for individuals and Hindu Undivided Families (HUF), and 2% for other entities, including firms. It was emphasized that the status of the deductee, not the deductor, determines the applicable TDS rate. (AI Summary)