# Section 194H — TDS on Commission / Brokerage

## Who deducts?

Payer: Any person except Individual / HUF whose business turnover ≤ ₹1 cr or profession gross receipts ≤ ₹50 L in immediately preceding FY.
Payee: Resident.

## Threshold

Commission or brokerage > ₹20,000 p.a.

## Rate

2%.

## Notes

'Commission' / 'brokerage' = payment received/receivable for services rendered (not professional services) in course of buying/selling goods or for any transaction relating to assets/valuable article/services.
Excludes commission on securities.

⚠️ Common exam mistakes

Applying 194H to insurance commission (it's 194D) or professional fees (it's 194J).
Small Ind/HUF deductors forgetting they're exempt from deducting unless their previous year turnover crosses the thresholds.

Reference: 194H

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Section 194H — Commission or Brokerage

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