The 60-second version
Section 194H requires 5% TDS when I pay commission or brokerage above ₹15,000 per payee per year — common for insurance agents, property brokers, and freelance sales. I deduct, deposit, file 26Q.
Commission TDS is 5% — separate from goods 194Q lane
Section 194H applies to commission or brokerage paid to resident — 5% TDS when aggregate exceeds ₹15,000 per payee per financial year.
Insurance agent payouts, property broker fees, and referral commissions all fall here — not Section 194J professional fees.
Payee without PAN triggers higher rate under Section 206AA — collect PAN before first payment.
Goods lane: Section 194Q guide.
Commission vs related TDS sections
| Section | Rate | Payment type |
|---|---|---|
| 194H commission | 5% | Brokerage / agent commission |
| 194J professional | 10% | CA / lawyer / consultant fees |
| 194C contractor | 1–2% | Contractor payments |
| 194Q goods | 0.1% | Goods purchase |
| 206AB non-filer | Higher | If payee non-filer |
194H compliance sequence
Obtain TAN
Deductor registration if not already held.
Collect PAN
Agent PAN before first commission.
Deduct 5%
When cumulative crosses ₹15,000.
Challan 281
Deposit by 7th next month.
26Q + 16A
Quarterly return and agent cert.
TDS flow
194H deductor kit
- TAN.
- Agent PAN.
- Commission ledger.
- Challan receipts.
- 26Q ACK.
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GST on commission
TDS is income tax — GST on brokerage is separate if payee registered.
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0 of 4 checked
Property broker?
194H on brokerage — 194-IA is buyer TDS on property sale.
Insurance agent?
194H on commission — insurer may deduct on your behalf.
Below ₹15,000?
No 194H until cumulative crosses threshold per payee.
NRI agent?
Section 195 may apply — not 194H.
Lower deduction?
Form 13 certificate from AO if eligible.
194H vs 194J?
Commission = 194H; professional technical fee = 194J.
Your tax year is already running.
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