What is Section 194C?

What is Section 194C?

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.

How is TDS calculated under section 194C?

30,000 so no TDS is required to be deducted at that time but while making payment on 20-12-2019, aggregate payment in a financial year exceeds Rs. 1,00,000/- hence TDS will be deducted….How to calculate TDS under section 194C?

194C TDS calculation
Particulars Amount
Net payment on 20-12-2019 (28,000-1,080) 26,920

Who is liable to deduct TDS under 194Q?

the buyer of
New Regulations. According to the new provision – 194Q of the Income Tax Act, the buyer of the goods is obliged to deduct the TDS of the seller of the goods if the products purchased by the buyer from a specific seller have an annual value of Rs. 50,00,000/- or more.

Who is responsible for tax deduction u/s 194C?

Section 194C Explained According to the Section 194C of the Income Tax Act, any individual making a fee to a residential individual, who carries out ‘work’ as a contract between the ‘specified individual’ and the ‘resident contractor,’ is obliged and required to deduct TDS (Tax Deducted At Source).

How do I file my 194C tax return?

The due date for filing your income tax return (ITR) is fast approaching….Form 26AS tells which Income Tax Return Form you need to choose to file ITR.

S.No Section under which TDS is Deducted Type ITR form to be used for filing of Return
3 If deducted u/s 194C/194J/194H/194D with combination of any other section ITR3

How can I check my 194C income in ITR?

IS 194Q applicable on electricity bill?

Further please note that as per Circular Number 13/2021 provisions of section 194Q are not applicable on Transaction in Electricity. A transaction in electricity can be undertaken either by way of direct purchase from the company engaged in generation of electricity or through power exchanges.

IS 194Q applicable on capital goods?

21. Whether section 194Q & 206C(1H) are applicable on purchase of capital goods? Yes, section 194Q & 206C(1H) applies to purchase or sale of all goods whether on capital or on revenue account.

What is the difference between 194C and 194J?

Sunil, As per my views section 194C relate to payment to contractors while 194J relate to fee for professional or technical servies. Thus according to section 194C “Technical in nature” means services providing manpower not consultancy. while section 194J relats to consultancy services.

What is 194A in income tax?

As per section 194A, an individual or a HUF has to deduct tax from interest (other than interest on securities) if his turnover or gross receipts, during the preceding financial year exceeds Rs. 1 crore in case of business and Rs. 50 lakhs in case of a profession.