Section 194H of Income Tax Act "Commission or brokerage"
194H. Any person, not being an individual or a Hindu undivided family, who is responsible for paying, on or after the 1st day of June, 2001, to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of five per cent :
Provided that no deduction shall be made under this
section in a case where the amount of such income or, as the
case may be, the aggregate of the amounts of such income
credited or paid or likely to be credited or paid during the
financial year to the account of, or to, the payee, does not
exceed fifteen thousand rupees :
Provided further that an individual or a Hindu undivided
family, whose total sales, gross receipts or turnover from
the business or profession carried on by him exceed 51[one
crore rupees in case of business or fifty lakh rupees in
case of profession] during the financial year immediately
preceding the financial year in which such commission or
brokerage is credited or paid, shall be liable to deduct
income-tax under this section:
Provided also that no deduction shall be made under this
section on any commission or brokerage payable by Bharat
Sanchar Nigam Limited or Mahanagar Telephone Nigam Limited
to their public call office franchisees.
Explanation.-For the purposes of this section,-
(i) "commission or brokerage" includes any payment received
or receivable, directly or indirectly, by a person acting on
behalf of another person for services rendered (not being
professional services) or for any services in the course of
buying or selling of goods or in relation to any transaction
relating to any asset, valuable article or thing, not being
securities;
(ii) the expression "professional services" means services
rendered by a person in the course of carrying on a legal,
medical, engineering or architectural profession or the
profession of accountancy or technical consultancy or
interior decoration or such other profession as is notified
by the Board for the purposes of section 44AA;
(iii) the expression "securities" shall have the meaning
assigned to it in clause (h) of section 2 of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956) ;
(iv) where any income is credited to any account, whether
called "Suspense account" or by any other name, in the books
of account of the person liable to pay such income, such
crediting shall be deemed to be credit of such income to the
account of the payee and the provisions of this section
shall apply accordingly.
194-IA. (1) Any person, being a transferee, responsible
for paying (other than the person referred to in section
194LA) to a resident transferor any sum by way of
consideration for transfer of any immovable property (other
than agricultural land), shall, at the time of credit of
such sum to the account of the transferor or at the time of
payment of such sum in cash or by issue of a cheque or draft
or by any other mode, whichever is earlier, deduct an amount
equal to one per cent of such sum as income-tax thereon.
(2) No deduction under sub-section (1) shall be made where
the consideration for the transfer of an immovable property
is less than fifty lakh rupees.
(3) The provisions of section 203A shall not apply to a
person required to deduct tax in accordance with the
provisions of this section.
Explanation.-For the purposes of this section,-
(a) "agricultural land" means agricultural land in India,
not being a land situate in any area referred to in items
(a) and (b) of sub-clause (iii) of clause (14) of section 2;
54[(aa) "consideration for transfer of any immovable
property" shall include all charges of the nature of club
membership fee, car parking fee, electricity or water
facility fee, maintenance fee, advance fee or any other
charges of similar nature, which are incidental to transfer
of the immovable property;]
(b) "immovable property" means any land (other than
agricultural land) or any building or part of a building.
What is Direct payment? What is Salary? Section 191 and 192 of Income Tax Act 1961
What are Dividends? Section 194 of Income Tax Act 1961
What is Rent? Section 194 I of Income Tax Act 1961
What is Interest other than Interest on securities? Section 194A of Income Tax Act 1961
What is Payments to contractors? Section 194C of Income Tax Act 1961