{"id":5905,"date":"2023-11-28T13:40:34","date_gmt":"2023-11-28T08:10:34","guid":{"rendered":"https:\/\/simplemyfiling.com\/?p=5905"},"modified":"2023-11-28T13:43:09","modified_gmt":"2023-11-28T08:13:09","slug":"summary-of-tds-on-rent-and-tds-on-commission","status":"publish","type":"post","link":"https:\/\/simplemyfiling.com\/index.php\/2023\/11\/28\/summary-of-tds-on-rent-and-tds-on-commission\/","title":{"rendered":"SUMMARY OF TDS ON RENT AND TDS ON COMMISSION"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"5905\" class=\"elementor elementor-5905\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a080083 e-flex e-con-boxed e-con e-parent\" data-id=\"a080083\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e301a2e eael-dual-header-content-align-center elementor-widget elementor-widget-eael-dual-color-header\" data-id=\"e301a2e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"eael-dual-color-header.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<div class=\"eael-dual-header\">\n\t\t\t\t<h2 class=\"title eael-dch-title\"><span class=\"ez-toc-section\" id=\"SUMMARY_OF_TDS_ON_RENT_AND_TDS_ON_COMMISSION\"><\/span><span class=\"eael-dch-title-text eael-dch-title-lead lead solid-color\">SUMMARY OF TDS ON RENT AND <\/span> <span class=\"eael-dch-title-text\">TDS ON COMMISSION<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 ez-toc-wrap-center counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/simplemyfiling.com\/index.php\/2023\/11\/28\/summary-of-tds-on-rent-and-tds-on-commission\/#SUMMARY_OF_TDS_ON_RENT_AND_TDS_ON_COMMISSION\" >SUMMARY OF TDS ON RENT AND  TDS ON COMMISSION<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/simplemyfiling.com\/index.php\/2023\/11\/28\/summary-of-tds-on-rent-and-tds-on-commission\/#Section_194H_TDS_on_Commission_Payments\" >Section 194H: TDS on Commission Payments<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/simplemyfiling.com\/index.php\/2023\/11\/28\/summary-of-tds-on-rent-and-tds-on-commission\/#Key_Highlights\" >Key Highlights:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/simplemyfiling.com\/index.php\/2023\/11\/28\/summary-of-tds-on-rent-and-tds-on-commission\/#Time_of_TDS_Deduction\" >Time of TDS Deduction:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/simplemyfiling.com\/index.php\/2023\/11\/28\/summary-of-tds-on-rent-and-tds-on-commission\/#Exemption\" >Exemption:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/simplemyfiling.com\/index.php\/2023\/11\/28\/summary-of-tds-on-rent-and-tds-on-commission\/#Section_194I_TDS_on_Rent_Payments\" >Section 194I: TDS on Rent Payments<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/simplemyfiling.com\/index.php\/2023\/11\/28\/summary-of-tds-on-rent-and-tds-on-commission\/#Key_Highlights-2\" >Key Highlights:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/simplemyfiling.com\/index.php\/2023\/11\/28\/summary-of-tds-on-rent-and-tds-on-commission\/#Time_of_TDS_Deduction-2\" >Time of TDS Deduction:<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-375a9e09 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"375a9e09\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-515d5dcd\" data-id=\"515d5dcd\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6580e071 elementor-widget elementor-widget-text-editor\" data-id=\"6580e071\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><\/p>\n<div class=\"is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure style=\"text-align: left;\">\n<ul>\n<li>\n<div class=\"flex-1 overflow-hidden\">\n<div class=\"react-scroll-to-bottom--css-sojdz-79elbk h-full\">\n<div class=\"react-scroll-to-bottom--css-sojdz-1n7m0yu\">\n<div class=\"flex flex-col pb-9 text-sm\">\n<div class=\"w-full text-token-text-primary\" data-testid=\"conversation-turn-482\">\n<div class=\"px-4 py-2 justify-center text-base md:gap-6 md:py-6 m-auto\">\n<div class=\"flex flex-1 text-base mx-auto gap-3 md:px-5 lg:px-1 xl:px-5 md:max-w-3xl lg:max-w-[40rem] xl:max-w-[48rem] } group final-completion\">\n<div class=\"relative flex w-full flex-col lg:w-[calc(100%-115px)] agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col max-w-full\">\n<div class=\"min-h-[20px] text-message flex flex-col items-start gap-3 whitespace-pre-wrap break-words [.text-message+&amp;]:mt-5 overflow-x-auto\" data-message-author-role=\"assistant\" data-message-id=\"737c554f-f147-41ce-ac4c-b619ce5b2328\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p><strong>Summary of TDS Provisions: Sections 194H and 194I<\/strong><\/p>\n<p>In the realm of tax deduction at source (TDS), Sections 194H and 194I play a crucial role, regulating TDS on commission payments and rent payments, respectively. Let&#8217;s explore the key provisions of these sections:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Section_194H_TDS_on_Commission_Payments\"><\/span><strong>Section 194H: TDS on Commission Payments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Key_Highlights\"><\/span><strong>Key Highlights:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ol>\n<li><strong>Applicability:<\/strong> TDS is applicable on commission payments, and the rate is fixed at 5%, irrespective of the payer or payee type.<\/li>\n<li><strong>Threshold:<\/strong> TDS becomes applicable when the commission payment exceeds Rs. 15,000.<\/li>\n<li><strong>Calculation:<\/strong> TDS is deducted on the taxable amount before adding GST.<\/li>\n<li><strong>Definition of Commission:<\/strong> &#8220;Commission or brokerage&#8221; includes payments received for services rendered (excluding professional services) or any services related to buying or selling of goods or transactions involving assets, valuable articles, or things (excluding securities).<\/li>\n<li><strong>Who Must Deduct TDS:<\/strong> Any person, except individuals and Hindu Undivided Families (HUF). Individuals, HUFs, AOPs, BOIs are included if their business turnover exceeds Rs. 1 crore (or Rs. 50 lakhs for turnover from profession).<\/li>\n<\/ol>\n<h4><span class=\"ez-toc-section\" id=\"Time_of_TDS_Deduction\"><\/span><strong>Time of TDS Deduction:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>TDS should be deducted at the time of payment or credit (booking of invoice), whichever occurs earlier.<\/li>\n<li>Even if the credit is made to an account other than the party&#8217;s account, such as a suspense account, TDS is still applicable.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Exemption\"><\/span><strong>Exemption:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>TDS under this section is not applicable on insurance commission (Section 194D applies).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Section_194I_TDS_on_Rent_Payments\"><\/span><strong>Section 194I: TDS on Rent Payments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Key_Highlights-2\"><\/span><strong>Key Highlights:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ol>\n<li><strong>Applicability:<\/strong> TDS is applicable on rental payments made by any person, excluding individuals and HUFs. Individuals and HUFs are included if their business turnover exceeds Rs. 1 crore (or Rs. 50 lakhs for turnover from profession).<\/li>\n<li><strong>Types of Rental Payments:<\/strong>\n<ul>\n<li>Rent on plant and machinery: TDS rate is 2%.<\/li>\n<li>Rent on land and buildings, furniture and fixtures: TDS rate is 10%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Threshold:<\/strong> TDS is applicable when the annual rent payment exceeds Rs. 2,40,000.<\/li>\n<li><strong>Calculation:<\/strong> TDS is deducted on the taxable amount before adding GST.<\/li>\n<li><strong>Sub-letting:<\/strong> Rent includes sub-letting; therefore, TDS is applicable even if the payee is not the owner.<\/li>\n<li><strong>Exception:<\/strong> TDS is not deducted if rent is paid to a Real Estate Investment Trust (REIT) for a real estate asset owned by it.<\/li>\n<\/ol>\n<h4><span class=\"ez-toc-section\" id=\"Time_of_TDS_Deduction-2\"><\/span><strong>Time of TDS Deduction:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>TDS should be deducted at the time of payment or credit (booking of invoice), whichever occurs earlier.<\/li>\n<li>Even if the credit is made to an account other than the party&#8217;s account, such as a suspense account, TDS is still applicable.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/figure>\n<\/div>\n<p><div class=\"wp-block-post-date\"><time datetime=\"2023-11-28T13:40:34+05:30\">28 November 2023<\/time><\/div><div class=\"wp-block-post-author\"><div class=\"wp-block-post-author__avatar\"><img alt='' src='https:\/\/secure.gravatar.com\/avatar\/5022b13facf0fd085ac80e8f9b743453a0f6fcedd6c9a2c43139a08621b8de13?s=48&#038;d=mm&#038;r=g' srcset='https:\/\/secure.gravatar.com\/avatar\/5022b13facf0fd085ac80e8f9b743453a0f6fcedd6c9a2c43139a08621b8de13?s=96&#038;d=mm&#038;r=g 2x' class='avatar avatar-48 photo' height='48' width='48' \/><\/div><div class=\"wp-block-post-author__content\"><p class=\"wp-block-post-author__name\">Himanshu sekhar<\/p><\/div><\/div><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>SUMMARY OF TDS ON RENT AND TDS ON COMMISSION Summary of TDS Provisions: Sections 194H and 194I In the realm of tax deduction at source (TDS), Sections 194H and 194I play a crucial role, regulating TDS on commission payments and rent payments, respectively. Let&#8217;s explore the key provisions of these sections: Section 194H: TDS on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5764,"comment_status":"closed","ping_status":"open","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":""},"categories":[416],"tags":[534,533,471],"class_list":["post-5905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax","tag-commission","tag-rent","tag-tds"],"blocksy_meta":[],"jetpack_featured_media_url":"https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg","jetpack_sharing_enabled":true,"rttpg_featured_image_url":{"full":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"landscape":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"portraits":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-150x150.jpg",150,150,true],"medium":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-300x200.jpg",300,200,true],"large":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"1536x1536":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"2048x2048":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",640,427,false],"woocommerce_archive_thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640.jpg",300,200,false],"woocommerce_thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-300x200.jpg",300,200,true],"woocommerce_single":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-600x400.jpg",600,400,true],"woocommerce_gallery_thumbnail":["https:\/\/simplemyfiling.com\/wp-content\/uploads\/2023\/11\/coins-948603_640-100x100.jpg",100,100,true]},"rttpg_author":{"display_name":"Himanshu sekhar","author_link":"https:\/\/simplemyfiling.com\/index.php\/author\/simplemyfilinggmail-com\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/simplemyfiling.com\/index.php\/category\/tax\/income-tax\/\" rel=\"category tag\">Income Tax<\/a>","rttpg_excerpt":"SUMMARY OF TDS ON RENT AND TDS ON COMMISSION Summary of TDS Provisions: Sections 194H and 194I In the realm of tax deduction at source (TDS), Sections 194H and 194I play a crucial role, regulating TDS on commission payments and rent payments, respectively. Let&#8217;s explore the key provisions of these sections: Section 194H: TDS on&hellip;","_links":{"self":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts\/5905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/comments?post=5905"}],"version-history":[{"count":4,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts\/5905\/revisions"}],"predecessor-version":[{"id":5910,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/posts\/5905\/revisions\/5910"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/media\/5764"}],"wp:attachment":[{"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/media?parent=5905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/categories?post=5905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/simplemyfiling.com\/index.php\/wp-json\/wp\/v2\/tags?post=5905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}