Income Tax Act, 2025
Section 10: Subs. by s. 78, ibid., for “ten per cent.” (w.e.f. 12016).
10. Subs. by s. 78, ibid., for “ten per cent.” (w.e.f. 12016).
11. Sub-sections (2) and (3) omitted by Act 32 of 2003, s. 76 (w.e.f. 12003). Earlier sub-sections (2) and (3) were inserted
by Act 18 of 1992, s. 73 (w.e.f. 11992).
645
1[194H. Commission or brokerage.—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 2[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 3[fifteen
thousand rupees]:
4[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 the monetary limits specified under
clause (a) or clause (b) of section 44AB 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:]
5[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.]
1. Section 194H reinserted by Act 14 of 2001, s. 71 (w.e.f. 12001). Earlier section 194H was omitted by Act 27 of 1999,
s. 72 (w.e.f. 12000). Amended by Act 18 of 1992, s. 74 (w.e.f. 11992) and prior its omission section 194H was
inserted by Act 49 of 1991, s. 55 (w.e.f. 11991).
and
omitted by Act 32 of 2003, s. 76 (w.e.f. 12003). Earlier sub-sections
and
were inserted
by Act 18 of 1992, s. 73 (w.e.f. 11992).
645
1[194H. Commission or brokerage.—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 2[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 3[fifteen
thousand rupees]:
4[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 the monetary limits specified under
clause
or clause
of section 44AB 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:]
5[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,—
“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;
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;
the expression “securities” shall have the meaning assigned to it in clause
of section 2 of
the Securities Contracts
Act, 1956 (42 of 1956);
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.]
1. Section 194H reinserted by Act 14 of 2001, s. 71 (w.e.f. 12001). Earlier section 194H was omitted by Act 27 of 1999,
s. 72 (w.e.f. 12000). Amended by Act 18 of 1992, s. 74 (w.e.f. 11992) and prior its omission section 194H was
inserted by Act 49 of 1991, s. 55 (w.e.f. 11991).