Question
What is the rate of TDS to be deducted in payment or
credit to a resident contractor/sub-contractor other than an individual or a Hindu Undivided Family?Solution
The rate of TDS to be deducted in payment or credit to a resident contractor/sub-contractor other than an individual or a Hindu Undivided Family (HUF) is 2%. For an individual or a Hindu Undivided Family (HUF), the TDS rate is 1% in case of payment or credit to a resident contractor/sub-contractor. So, the correct rate of TDS for payment to a resident contractor/sub-contractor other than an individual or HUF is 2%.
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