Section 194C → Section 210
TDS on Payments to Contractors
Quick Answer
Section 194C of the Income Tax Act, 1961 (TDS on Payments to Contractors) corresponds to Section 210 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 194C
The starting point is Section 194C of the Income Tax Act, 1961 — TDS on payments to contractors. TDS @ 1% (Ind/HUF) or 2% (Others) on payments to contractors/sub-contractors.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 194C is retained and renumbered as Section 210 of the Income-tax Act, 2025. Retained. Broadest TDS section for business expenses.
The transition impact on Section 194C is assessed as Critical. Foundation for business expense compliance.
Sec 194C
Provision Summary
TDS @ 1% (Ind/HUF) or 2% (Others) on payments to contractors/sub-contractors.
Sec 210
Provision Summary
Retained. Broadest TDS section for business expenses.
Key Changes & Highlights
- Definition of 'Work' remains inclusive of advertising, broadcasting, and job work.
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Frequently Asked Questions
Which subject does Section 194C of the 1961 Act cover?
Section 194C of the Income Tax Act, 1961 covers TDS on payments to contractors. TDS @ 1% (Ind/HUF) or 2% (Others) on payments to contractors/sub-contractors.
What is the new section number for Section 194C under the Income-tax Act, 2025?
Section 194C of the Income Tax Act, 1961 maps to Section 210 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Broadest TDS section for business expenses.
How does the Income-tax Act, 2025 affect Section 194C in practice?
The transition impact for Section 194C is rated Critical. Foundation for business expense compliance.
What is new about Section 194C under the Income-tax Act, 2025?
Definition of 'Work' remains inclusive of advertising, broadcasting, and job work. These points are specific to Section 194C (TDS on Payments to Contractors).
Disclaimer: This mapping of Section 194C (TDS on Payments to Contractors) to Section 210 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 194C is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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