TDS on Contractor Payments under Section 194C – Individual vs. Company Rates (FY 2025-26)
Introduction Tax Deducted at Source (TDS) is an important compliance mechanism under the Income-tax Act, 1961. Businesses making payments to contractors and subcontractors are required to deduct TDS under Section 194C, subject to prescribed conditions and threshold limits. A common area of confusion is whether the TDS rate differs depending on whether the contractor is an individual, HUF, partnership…