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Transcript

194H Commission/Brokerage 15000 p.a. TDS on Commission/Brokerage is deducted if commission paid to broker/sales agent etc. is more than 15000 per annum. Commission TDS Deducted 5000 No 11000 No 15000 No 18000 Yes On Which Amt 18000 or 15000 ? TDS Deducted on Full 18000 SECTION DESCRIPTION CUTOFF RATES 5% No TDS as upto 15000 Commission Paid to Sales agent 1250 pm. Agreement Starts from 1 Apr Annual Commission till 31 March =1250*12 =15000 Commission Paid to Sales agent 2000 pm. Agreement Starts from 1 Apr Annual Commission till 31 March =2000*12 =24000 Commission Paid to Land Broker 20000. =20000 Equal to 15000 NO TDS - More than 15000 TDS to be deducted More than 15000 TDS to be deducted TDS to be deducted as More than 15000 5% SECTION DESCRIPTION CUTOFF RATES 194H Commission/Brokerage 15000 p.a. Example: Building purchased for 40 lacs from DLF 2% Commission paid to Khosla Properties. Commisssion Amt =2%*4000000=80000 It is more than 15000,So TDS Deducted @ 5% under Section 194H Entry will be Building A/C Dr. 4000000 To DLF 4000000 Commission Dr. 80000 To Khosla Properties 76000 To TDS 194H 5000 SECTION DESCRIPTION CUTOFF RATES 194H Commission/Brokerage 15000 p.a. TDS Deducted on Commission Brokerage @ 5% under Section 194H However,No TDS if Annual Commission upto 15000 5%

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.