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Tds on commission charges

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This query is : Resolved

Quick Summary

This discussion clarifies the TDS (Tax Deducted at Source) applicable to commission charges. Initially, there was confusion regarding the rate under Section 194H. It's confirmed that the current TDS rate for commission charges is 2%, not 5% as previously suggested. This deduction must be deposited by the 7th of the following month.

Allauddin Patel

Allauddin Patel (Querist)

27 September 2026 Broker issued tax invoice for commission of sale of goods ..
Taxable 25000
Tax 18% -
So question is do i need to deduct tds on 25000 taxable amount at rate of 2% and deposit till next month 7th date ?

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

27 September 2026 You must deduct 5% TDS (₹1,250) on the ₹25,000 base amount under Section 194H, rather than the 2% suggested, and deposit this withheld amount by the 7th of the next month.

Allauddin Patel

Allauddin Patel (Querist)

28 September 2026 No sir , current tds rate under section 194 h is now 2%, 5% has been removed in 2024 year.

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