TDS on Commission & Brokerage

 

Section 194H of the Income Tax Act: TDS on Commission & Brokerage

 

Section 194H of the Income Tax Act mandates TDS deduction on payments made as commission or brokerage. Under this section, the person responsible for paying commission, other than an individual or Hindu Undivided Family (HUF), must deduct tax at 5% when the amount exceeds ₹15,000 in a financial year. As per the Union Budget 2024, the TDS rate under Section 194H will be reduced from 5% to 2% effective from October 1, 2024.