As per section 194H

TDS is to be deducted on Commission at 5%

However, No TDS is to be deducted if annual amount is upto 15000 per annum. If Amount is 15001 then TDS is deducted.



Cut off

Rate of TDS

Section 194 H

Payment of Commission

15000 p.a.




Building purchased for 40 lacs from DLF 2% Commission paid to Khosla Properties

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Cash Sales 5000 pieces @ 60 each Rs 300000.Commission paid to Sales Agent Amit  @ Rs 20 per piece 

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Section 194H TDS on Commission - Rates of TDS



  1. Tax Practical
  2. Practical TDS (Non Salary)

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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.