L-19- Income tax - TDS- Sec 192 , Sec- 194C

Deduction of Tax at Source with regard to Salary Income Section 192
1. Every person (including individual and HUF even if limit prescribed under section 44AB has not
exceeded in the preceding year) making payment of salary income to resident or non-resident shall deduct
tax at source and for this purpose the employer shall estimate tax liability of the employee and tax so
estimated shall be deducted in 12 monthly equal installments. While estimating tax liability, deduction under
section 80C to 80U shall be allowed

TDS in case of Payments to Contractors Section 194C
1. Every person responsible for making payment to a resident contractor in connection with any work shall
deduct tax at source @ 2% and in case of payment to individual or Hindu Undivided Family, the rate of
TDS shall be 1%. Tax shall be deducted at source only if the amount being paid is exceeding ₹30,000 or the
amount paid or payable during a particular financial year to a particular person exceeds ₹1,00,000.

2. An Individual or Hindu Undivided Family shall be required to deduct tax at source only if the turnover in
case of business has exceeded ₹ 1 crore and gross receipts in case of profession has exceeded ₹ 50 lakhs,
during the financial year immediately preceding the relevant year.

3. No individual or HUF shall deduct tax at source under this section, if the amount is paid for personal
purpose of such individual or HUF.
4. Contract for this purpose shall include every type of contract e.g.