What is the TDS rate and threshold on commission or brokerage under Section 194H?
Category
Rates & sections
Answered by
A CA firm
Bottom line
2% once commission or brokerage exceeds ₹20,000 in the financial year.Section 194H applies to commission or brokerage (other than insurance commission). The rate is 2% (reduced from 5% with effect from October 2024), and TDS applies once payments exceed ₹20,000 in the financial year.
It does not cover ordinary trade discounts or principal-to-principal transactions — only payments for services rendered in the course of buying or selling goods or providing services. No valid PAN means 20%.
General information for FY 2026-27 under the Income-tax Act 2025, not advice on your specific case. Verify against the latest law or ask a CA before acting.