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194 H of Income tax Deduction amount

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44 Points Posted on 31 December 2024

Hi Sir/Madam

As per Section 194 H TDS has to be deducted at 2%(effective from 01.10.2024) on the commission and Brokerage

If PAN is not furnished, TDS will be deducted at the rate of 20% or the rates in force whichever is higher.

Here the law makers intention is "rates in force" means "2%"

Please advise

Replies (2)

Quick Summary

This discussion clarifies the TDS deduction rate under Section 194H for commission and brokerage. The standard rate is 2% effective from October 1st, 2024. However, if a PAN is not provided, the TDS rate increases to 20% or the prevailing rate, whichever is higher, meaning 20% will be applied in such cases.