I am paying around 25 lakhs to my architect-cum-developer for the interior development of my flat. Do I need to deduct TDS and if so at what rate and which form to use to make the TDS payment?
Hello @Sankar,
You’re only supposed to deduct TDS at 2% if you’re paying more than ₹50 lakhs to the contractor/architect for the professional services and it must be reported through filing Form 141.
So, in your case, it’s not applicble.
We also have a detailed thread on: What is Form 141? TDS return for property, rent, and other specified payments
Hope this helps!
In the case of interior development payments, TDS depends on the type of contractor and the value of the contract. Section 194C generally applies 1% or 2% TDS if the payment exceeds the prescribed threshold.