WHAT IS 194C of Income Tax Act?
What is Section 194C? Section 194C states that any person responsible for paying any sum to the resident contractor for carrying out any work (including the supply of labor), in pursuance of a contract between the contractor and the following: The Central Government or any State Government.
What is the limit to deduct TDS US 194C?
What is the limit to deduct TDS u/s 194C? The following is the limit applicable under section 194C to deduct TDS: The amount paid or credit is a single contract that exceeds Rs 30,000. The amount paid or credit during the financial year altogether exceeds Rs 1,00,000.
Is TDS deductible for govt employees?
All these employers are required to deduct TDSat a specific time period and deposit it to the government. According to section 192 of the income tax act, there must be an employer-employee relationship for the deduction of tax at source.
Is TDS applicable for government?
TDS is not applicable in the following cases: When the amount is paid to government or any government body and Reserve Bank of India. Amount is paid to notified mutual funds under Section 10(23D). When deductee has certificate of no-deduction under Section 192 of the Income Tax Act.
What is Section 194A?
Section 194A deals with deduction of TDS on interest other than interest on securities like Interest on Fixed Deposits,Interest on Loans and Advances other than banks.
Who is TDS Deductor and Deductee?
Who is a deductor and a deductee? In case of certain prescribed payments (e. g. Interest, commission, brokerage, rent, etc.) the person making payment is required to deduct tax at source (TDS) at the prescribed rate. The payer is known as deductor and the payee, who receives the net payment is called the deductee.
Is government liable to pay income tax?
Who are the Tax Payers? Any Indian citizen aged below 60 years is liable to pay income tax, if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he/she will have to pay taxes to the Government of India.
What is 4JA and 4JB in TDS?
The section 194J corresponding to Fees for Professional and Technical Services has been divided into 2 sub-sections, Fees for Technical Services (other than Professional Services) or Royalty and Fees for Professional Services , with payment codes 4JA and 4JB respectively.
What is section 194C of the Income Tax Act?
Section – 194C, Income-tax Act, 1961 – 2015. 98[Payments to contractors. 99 194C. 99a (1) Any person responsible for paying any sum to any resident (hereafter in this section. referred to as the contractor1) for carrying out any work1 (including supply of labour for carrying out any.
What is section 194C of TDs?
Section 194C is also applicable to a sub contractor and any contractor supplying labour to carry out any work. As such, TDS has to be deducted by the person responsible for making any payment.
Does section 194C of the Labour Act apply to recruitment agencies?
Ans: Section 194C covers supply of labour also. Payments to recruitment agencies are in the nature of payment for services. Accordingly, provisions of section 194C shall not apply. The payment will, however, be subject to TDS under section 194J of the Act.
Is section 194C applicable to electricians?
However, if the bus, aircraft, or any other travel mode is chartered then section 194C is applicable Any payment made to an electrician or a contractor for an electrician’s services is covered under section 194C.