How to File Form 141 — Schedule C
TDS on Payments to Contractors & Professionals
A complete walkthrough for individuals and HUFs deducting TDS under Section 393(1) [Table Sl. No. 6(ii)] on contract, professional service, and commission payments exceeding ₹50 lakh in a Tax Year.
Old FormForm 26QD
ThresholdAggregate >₹50L/year
TDS Rate2% / 1% (type-based)
Due Date30 days from month-end
Where to find this form
Form 141 is not under e-File → Income Tax Forms, and not on the pre-login screen. You must log in and access it via e-File → e-Pay Tax.
1
Who Needs to File Schedule C?
Schedule C covers TDS on payments made to residents for contract work, professional services, and commission/brokerage — but only by a specific category of payers. Understanding whether you are covered is the first critical step.
✅ Who files Schedule C
- An individual or HUF who is not required to deduct TDS under any other provision of the Income-tax Act on the same payment
- Specifically: individuals/HUFs whose turnover from business was below ₹1 crore in the preceding Tax Year, or below ₹50 lakh from profession, or those with no business or professional income
- Filing is triggered only when aggregate payments to a resident for these services exceed ₹50 lakh in a Tax Year
❌ Not applicable to: Companies, firms, or individuals/HUFs who are already required to deduct TDS under other provisions (such as those liable to tax audit who use Form No. 140 instead).
The types of payments covered under Schedule C are:
Contract
Contract Payments
Any work including supply of labour carried out in pursuance of a contract.
Commission
Commission / Brokerage
Commission or brokerage payments to resident agents, distributors, or intermediaries.
Professional
Professional Fees
Fees paid to chartered accountants, lawyers, consultants, architects, and other professionals.
The ₹50 lakh threshold is aggregate — not per payment
The threshold applies to the total payments made during the Tax Year to a resident under all three categories (contract + commission + professional) combined. Once the aggregate exceeds ₹50 lakh in a Tax Year, TDS applies on all payments from that point onwards. Filing Form 141 Schedule C is required for the month in which each such payment is made/credited.
2
Before You Begin — Prerequisites
| What You Need | Details |
|---|---|
| PAN of the payer | Your own PAN — used for login and auto-population. MANDATORY |
| PAN of the payee | Contractor’s, professional’s, or agent’s PAN. Invalid PAN triggers higher TDS rate. MANDATORY |
| Nature of payment | Identify whether the payment is for contract work, commission/brokerage, or professional services — this determines the TDS rate. |
| Date of agreement | Date on which the contract or service agreement was entered into. |
| Aggregate payments to date | Running total of all payments made from 1st April to the end of the month of the current payment — required for the aggregate threshold tracking field. |
| Payment method | Net banking, UPI, or debit card — payment is made simultaneously. |
3
Login and Navigate to Form 141
Steps 1 through 5 are identical for all four schedules. If you have already read another schedule’s guide, skip to Section 4.
1
Log in to the Income Tax e-Filing Portal
Visit incometax.gov.in and log in using your PAN and password as the payer (deductor).
2
Go to e-File → e-Pay Tax
From the dashboard: e-File → e-Pay Tax. The only access route for Form 141.
3
Select Income-tax Act, 2025
Select “Income-tax Act, 2025 [For Tax Year 2026-27 and onwards]” from the Act options.
4
+ New Payment → Select Form 141 (Challan-cum-statement)
Click + New Payment and select “Form 141 (Challan-cum-statement…)” — not the Demand Payment variant.
Two Form 141 entries — pick the correct one
Always select “Form 141 (Challan-cum-statement…)” for fresh filings. The “Demand Payment” variant is only for clearing defaults on previously processed statements.
5
Select Corporate or Non-Corporate Deductee
Select based on the payee’s (contractor’s/professional’s) status. Check the 4th letter of their PAN — “C” = corporate, others = non-corporate. If you pay both company and non-company payees in the same month, file separate Form 141s for each group.
[SCREENSHOT: form141c-step1-new-payment.jpg]
New Payment popup — Form 141 selected, Corporate/Non-Corporate popup
New Payment popup — Form 141 selected, Corporate/Non-Corporate popup
Select Form 141 (Challan-cum-statement) then choose deductee status
4
Deductor Details — Payer’s Particulars
| Field | Source / Action |
|---|---|
| Residential Status | Select from dropdown. SELECT |
| PAN, Name, Address, Contact, Email | Auto-populated from your profile. AUTO |
| Tax Year | Select e.g. 2026-27. SELECT |
| Month of Deduction | Month in which the payment was made/credited and TDS was deducted. SELECT |
| Nature of Transaction | Select Schedule C — Payment by way of commission/brokerage or fee for professional services or payment in pursuance of a contract and click Continue. SELECT |
5
Schedule C — Transaction Details
Unlike Schedule A and B, Schedule C does not involve property details. It is a payment-level transaction form — one set of fields per payee per payment.
A
Nature of Payment
Select the nature of the specific payment from the dropdown:
| Option | Applicable Rate | When to Use |
|---|---|---|
| Work in pursuance of a contract | 1% | Payments for construction, supply of materials, manufacturing under a contract |
| Commission or brokerage | 2% | Payments to agents, distributors, brokers on sales or transactions |
| Fee for professional services | 2% | Payments to CAs, lawyers, doctors, architects, management consultants |
B
Payee (Deductee) Details
| Field | Notes |
|---|---|
| PAN of deductee | Contractor’s/professional’s PAN. Name auto-populates on entry. MANDATORY |
| Contact number | Auto-populated once PAN is entered. Verify. AUTO / VERIFY |
Multiple payees of same status in same month
A major improvement over Form 26QD — you can now include multiple payees (contractors or professionals) of the same status in a single Form 141 Schedule C for the same month and same nature of payment. Previously, a separate Form 26QD was required for each payee.
C
Payment Details
| Field | Notes |
|---|---|
| Date of Contract / Agreement | Date the service agreement or contract was entered into. MANDATORY |
| Aggregate Payments from 1st April to End of Month | Running cumulative total of all payments of the same nature made to this payee from 1st April of the Tax Year through to the end of the current month. This is the threshold-tracking field — it helps the portal and the Department verify when the ₹50 lakh aggregate is crossed. MANDATORY |
| Date of Payment / Credit | Date on which the current payment was made or credited to the payee. MANDATORY |
| Amount Paid / Credited | Amount paid in this specific transaction. MANDATORY |
| Amount on which TDS is Deductible | The taxable base for this payment — typically the amount paid minus any GST component if separately charged and identifiable. MANDATORY |
| Certificate u/s 395(1) | If the payee holds a lower/nil deduction certificate from the AO, select Yes and enter the certificate number. Otherwise, select No. |
| Rate of TDS | 1% for contract payments, 2% for professional fees and commission. SELECT |
| TDS Amount | Auto-calculated as Amount × Rate. AUTO-CALCULATED |
| Date of Deduction | Date TDS was deducted — typically the same as the date of payment or credit. MANDATORY |
D
Tax Deposit Details
| Field | Notes |
|---|---|
| TDS Amount | Auto-calculated from above. AUTO |
| Interest | Under Section 398(3)(a) for late deduction. 1% per month from when TDS was due to be deducted to actual deduction; 1.5% per month from deduction to deposit. |
| Late Filing Fee | Under Section 427 for filing after the 30-day deadline. |
[SCREENSHOT: form141c-step2-schedule-c.jpg]
Schedule C filled — nature of payment, payee PAN, aggregate amount, TDS
Schedule C filled — nature of payment, payee PAN, aggregate amount, TDS
Schedule C transaction details — select nature of payment carefully as it determines the TDS rate
6
Payment and Confirmation
Click Continue after completing Schedule C. You are redirected to the payment screen where TDS payment and form submission happen simultaneously.
🏦 Net Banking
💳 Debit Card
📱 UPI
💵 NEFT / RTGS
🏧 Over the Counter
On successful payment, a CIN and ARN are generated. Download the challan-cum-statement immediately and retain as proof of filing.
[SCREENSHOT: form141c-step3-confirmation.jpg]
Payment confirmed — CIN and ARN generated
Payment confirmed — CIN and ARN generated
Download the challan-cum-statement from this screen immediately after confirmation
📥 Downloading Form No. 132 — The TDS Certificate for the Payee
After filing, download Form No. 132 (the TDS certificate replacing erstwhile Form 16D) from TRACES and issue it to the contractor or professional within 15 days from the due date of filing Form 141.
New to TRACES? Read our step-by-step guide: TRACES Portal Revamped — How to Register and Use It.
1
Log in to TRACES using your deductor PAN
2
Navigate to Downloads → Form 16D / Form 132
3
Enter your PAN, ARN from Form 141, and Tax Year
4
Submit download request and wait for processing
5
Download, sign, and issue to payee within 15 days of Form 141’s due date