TDS payment challan query

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This discussion addresses how to handle TDS payments when both company and non-company deductees are involved in a single challan, particularly under Section 194C. While one expert suggests you can use a single challan and file the TDS return accordingly, another advises separating payments for company and non-company deductees. This is because the TDS rate under Section 194C differs (1% for individuals/HUFs and 2% for others), making segregation of liability advisable.

Rashmi Ranjan Das

Rashmi Ranjan Das (Querist)

12 May 2022 Dear experts
Which option will select in type of deductee section like 0020,0021 while make tds payment of both company and non company in a single challan. For example we'll make payment u/s 194c there's including total 200 deductee both company and individuals. Kindly help me to clear the doubt.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 May 2022 You can choose any one no problem, file TDS return for both with the single challan.

CA Puja Sharma

CA Puja Sharma (Expert)

12 May 2022 It's better to deposit the tax separately for the company and non-company deductees.

U/s 194C, the rate of TDS I is 1% for individuals and HUF, and for others, it is 2%.
So it's better to segregate the liability.

Rashmi Ranjan Das

Rashmi Ranjan Das (Querist)

12 May 2022 Thank you sir, for your quick reply

Rashmi Ranjan Das

Rashmi Ranjan Das (Querist)

12 May 2022 Thank you experts, for your quick reply

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