Section 194H of Income Tax - TDS on Commission paid
All about TDS on Commission paid in respect of Section 194H of Income Tax
TDS ON COMMISSION PAID - SECTION 194H
As per Section 194H, any payment made as a commission to any resident person is liable for a TDS deduction.
We take a look at the provision in detail here.
How is required to deduct TDS in respect of Commission payments?
1.Every person other than Individual & HUF is mandatorily required to deduct tax i.e. TDS on commission paid to any resident person.
2. In case the payer is an Individual or HUF, the TDS is required only when the turnover of the Individual or HUF is above 1 Crore in the preceding previous year.
Is there any threshold above which TDS is required in case of commission payments?
No TDS is required to be deducted if the total commission during the F.Yr. paid to any person is below Rs.15000/-. i.e.
In case Mr. X is paid a commission of Rs.7000/- on 15-10-2021 and Rs.7500 on 21-3-2022 then there is no requirement to deduct TDS since the total commission paid during the year is Rs.14500/- only.
What is the Commission for Section 194H?
"commission or brokerage" includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities;
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