TDS issue
![TDS issue](https://sp-ao.shortpixel.ai/client/to_auto,q_glossy,ret_img,w_1254,h_837/https://cacult.com/wp-content/uploads/2020/07/qtq80-oM9drX.jpeg)
SECTION- 194C
![](https://media3.giphy.com/media/d5pBBi43j9FNUEZRwr/giphy.gif)
Query:
Under which section TDS will be deducted if assessee takes a car on rent in following circumstances?
Case I : If only car is given on rent.
Case II: If car with driver (chauffeur) is given on rent.
Solution:
As per section 194C of the Income-tax Act, 1961, NO TDS will be deducted if such contract is for personal purpose of assessee (Individual/HUF only).
Case I: if contract is to give car without chauffeur on rent then TDS will be deduct u/s 194I @ 2% and,
Case II: if contract is for giving car with chauffeur on rent then TDS will be deduct u/s 194C @1% or 2% as the case may be.