Brokerage payment

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Quick Summary

When selling a flat and paying brokerage, it's important to understand your tax obligations. While some may believe TDS (Tax Deducted at Source) is always required on brokerage, it generally only applies in cases subject to a tax audit. If you're unsure, it's best to seek clarification or consult with a tax professional to ensure you comply with regulations and avoid potential penalties.

edgar sylva

edgar sylva (Querist)

11 October 2022 Having sold my flat I have to pay 1 pct brokerage to my broker.
Do I have to deduct tax on this brokerage before issuing her a cheque or can I pay the whole amount to her?
She has said that all taxes and charges will be paid to the Govt by her firm.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 October 2022 Yes, deduct TDS on brokerage paid.

edgar sylva

edgar sylva (Querist)

11 October 2022 what TDS should I deduct from the brokerage and where do I pay it Mr. Seetharaman.

edgar sylva

edgar sylva (Querist)

11 October 2022 First time in my life I have sold my flat and moved to my hometown. I am nearly 80 years of age.

edgar sylva

edgar sylva (Querist)

11 October 2022 what happens if I have not deducted TDS and sent a cheque to the broker for the full 1 pct brokerage? I can still act as the cheque is in transit. Should reach the broker tom as I am tracking the speed post.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 October 2022 No need of TDS in your case.
TDS applicable only for tax audit cases.

Message likes : 1 times

edgar sylva

edgar sylva (Querist)

11 October 2022 thank you Sir.I appreciate your prompt response.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 October 2022 You are welcome..

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