A comprehensive guide to understanding TDS levied on commission and brokerage
The TDS rate under section 194H is 3.75% for transactions from 14 May 2020 until 31 March 2021.
Commission or brokerage includes any payment
TDS on commission or brokerage includes,
People are under the presumption that Presumptive Taxation is applicable to Income from the commission but technically it is not correct.
The rate of TDS is 5%. The rate is 3.75% for transactions from 14 May 2020 until 31 March 2021. No surcharge, education cess or SHEC shall be added to the above rates. Hence, the tax will be deducted at source at the basic rate. The rate of TDS will be 20% in all cases if PAN is NOT quoted by the deductee.
The deductee (the person whose tax is deducted) can make an application to the assessing officer under section 197 for deduction of tax at NIL rate or at a lower rate.
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