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TDS on brokerage

27 January 2021

please let me know if brokerage paid by an individual to an individual on services provided for sale of property is liable toTDS

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8 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 27 January 2021

Yes tds will be deducted u/s 194H @ 10%

Dalip Soni (116 Points)
Replied 27 January 2021

But as per the section 194H, if the person is an individual or HUF, then he is not such liable. please clarify

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 27 January 2021

Section 194H is for income tax deducted on any income by way of commission or brokerage, by any person responsible for paying to a resident.
Individuals and Hindu Undivided Family who were covered under section 44AB are also required to deduct TDS. From FY 2020-21, individual and HUF whose turnover from business is above Rs 1 crore or gross recipts from profession are above Rs 50 lakh are also required to deduct TDS.

Dalip Soni (116 Points)
Replied 27 January 2021

It is conditional, if the person or HUF having turnover more than 1crore by way of business or more than 50 lacs by way of profession, than only the section applies. Is it write sir?

Kapadia Pravin (17249 Points)
Replied 27 January 2021

IF brokerage services are in respect of business property and company is under tax audit then TDS is to be deducted. IF brokerage services outside business then no TDS is to be deducted.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 27 January 2021

Yes you are right dalip

Dalip Soni (116 Points)
Replied 28 January 2021

Thanks sir

Ashok J (CA Final) (880 Points)
Replied 31 January 2021

If it is your personal transaction - NO TDS

If it is your business transaction - first check what is the Amount of commission - If it is less than 15000 - No TDS. If it is more than 15000, check for FY 19-20 whether you were under tax audit. If yes, then deduct TDS @ 3.75%. If not, No TDS irrespective of amount paid in FY 20-21.

Now TDS rates have been reduced till 31 March.