Fast Summary: Core TDS Sections for B2B Payments
When paying contractors, consultants, and landlords in India, buyers are legally mandated to deduct Tax Deducted at Source (TDS) under the Income Tax Act, 1961:
| Section | Nature of Payment | TDS Rate | Annual Threshold |
|---|---|---|---|
| 194C | Contractor / Subcontractor Services | 1% (Individual/HUF), 2% (Company) | ₹30,000 single / ₹1,00,000 aggregate |
| 194J (a) | Technical Services, Call Center Ops | 2% | ₹30,000 per financial year |
| 194J (b) | Professional Services (Doctors, Lawyers, CAs, Tech Consultants) | 10% | ₹30,000 per financial year |
| 194I | Rent of Land / Building | 10% | ₹2,40,000 per financial year |
| 194I | Rent of Plant & Machinery | 2% | ₹2,40,000 per financial year |
Crucial Rule: TDS is deducted on the base taxable value, NOT on the GST component (CBDT Circular No. 23/2017).
Calculate your exact net disbursement with the TDS Calculator on Tools24Now.