Do we need to deduct TDS for non employees
This query is : Resolved
30 November 2025
Do we need to deduct TDS for non employees who are not employed with the company but just got their referal earnings as they refered people to use a platform. like one usecase is they might be users of platform but they get referal money when they refer their friends right.
30 November 2025
Yes — referral earnings paid to non-employees are generally treated as commission and attract TDS under Section 194H of the Income Tax Act, provided the threshold and conditions are met.
Section 194H governs TDS on commission and brokerage.
• Rate: 2% TDS.
• Threshold: Applicable if the total commission paid to a person exceeds ₹15,000 in a financial year.
Section 194H governs TDS on commission and brokerage.
• Rate: 2% TDS.
• Threshold: Applicable if the total commission paid to a person exceeds ₹15,000 in a financial year.
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