Section 194H - TDS on commission or brokerage (as amended by Finance Act 2025)

• Applicability

Any person other than Individual or HUF who are responsible for paying any sum by way of commission (not an insurance commission) or brokerage to any resident shall deduct TDS, if such sum or aggregate of such sum paid or credited during the financial year exceed Rs. 20,000.

Note : Individual & HUF is also required to deduct TDS, if turnover of preceding Financial year is more than Rs. 1 crore in case of business or Gross receipt is more than Rs. 50 lakhs in case of profession.

• Rate of TDS

TDS shall be deducted @ 2%

• Time for deducting TDS

At the time of credit of such Income to the account of payee or at the time of payment whichever is earlier.