TDS - Section 194 D and 194 H

Sec. 194D is for payment of insurance commission whereas Sec. 194H is for brokerage and commission (not being insurance commission).

The rate of tax deduction is 10% (no surcharge & education cess etc.) for F.Y. 2009-10 for both the Sections.

Dear srinivasan and Namita, I have noticed  often that people do mistake in deducting and depositing TDS for brokerage and commission u/s 194H.  in section 194D of insurance commisiion the exemption limit is Rs 5000-. while in case of 194H  the  TDS should be deducted immediately  the brokerage or commission crosses  rs. 2500- p.a.