Tds under section 194h commission & brokerage

You can deduct TDS on aggregate amount as and when you cross the limit; but practically it is difficult when the final amount payable is less than TDS on aggregate amount.

So, you may deduct TDS from the beginning of the year wherever the amount is likely to cross the basic limit.

If  you are paying  commission   1250/- or more per month  in  F.Y.  then you have to deduct  TDS  @ 5%  per  month  (194H - I.T  act 1961)

(1250*12 = 15000/-)

Mr. Prasad Nilugal,

But how could i know in well advance that commission amount will cross 1250/- month.

If commission in month of Apr = 2000, may = 700, june = 200, july = 1500.

Total amount = 4400, but if we calculate by 1250/- month, it will 5000 for four month.

Actually we have deducted TDS considering 2000/- in the month of april, but in reality aggregate total amount is less than 1250/- month.

So deducting in one month and not in other month will create issues.

So Suggest some concrete answers.

See , I have given you estimeted  amount  1250/-  per month  it may  differ  , more or less . check  last  year   commission paid . After all its all on estimated  amount  for F.Y. .

Also requried valid TAN  no of income tax dept for TDS deduction ,hope you are having  . One more  thing  that  Gst  applicable on  commission  so  you  have  exclude  gst  amount  , while  calculating  TDS .