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TDS - Section 194 D and 194 H

k srinivasan (Sr Mgr) (50 Points)

19 November 2009

I would like to know the difference between Section 194-D and 194-H.

As a credit insurer, we need to make payment to Brokers for their services and Bankers under Bancassurance.

What is the Rate w.e.f. 1.10.09 under both the above sections?

Thanks and regards

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CA Namita Ganatra (Self) (70 Points)
Replied 19 November 2009

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.

CA RITESH JUNEJA (CA, DISA,B COM) (151 Points)
Replied 10 January 2010

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.

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