Free tool
Commission TDS calculator (194H)
Paying agents, brokers or channel partners? See the TDS to deduct, the GST your agent adds, the net amount to pay out and the TDS to deposit.
The commission or brokerage before GST and before TDS.
TDS under Section 194H is 2% (reduced from 5% on 1 Oct 2024). Without a PAN it is 20% under Section 206AA. No TDS applies if total commission to the agent in the financial year stays within the ₹20,000 threshold (₹15,000 before FY 2025-26).
TDS is deducted on the commission value, not on the GST shown separately on the invoice (CBDT Circular 23/2017). Deposit the TDS by the 7th of the next month and report it in your quarterly TDS return. Indicative — confirm with your CA.
Commission TDS — FAQ
What is the TDS rate on commission under Section 194H?
2% of the commission or brokerage, deducted at the time of credit or payment, whichever is earlier. The rate was reduced from 5% to 2% with effect from 1 October 2024.
What is the 194H threshold?
No TDS is required if the total commission or brokerage paid to a person in the financial year does not exceed ₹20,000 (raised from ₹15,000 with effect from FY 2025-26). Once payments cross the threshold, TDS applies.
What if the agent has no PAN?
Without a valid PAN, TDS must be deducted at 20% under Section 206AA instead of 2%. The agent also cannot get credit for the deduction easily, so it is in everyone's interest to collect the PAN before paying.
Is GST applicable on commission income?
Yes — commission and brokerage are taxable services at 18% GST. If your agent is GST-registered they add 18% on their invoice. TDS is still deducted only on the commission value, not on the GST component shown separately (CBDT Circular 23/2017).
When do I deposit the TDS I deducted?
By the 7th of the month following the deduction (30 April for deductions made in March), and it is reported in your quarterly TDS return (Form 26Q) with a TDS certificate (Form 16A) issued to the agent.
If you pay commissions every month, Finocket's partner commission ledger tracks each agent's accruals, the TDS deducted and the net paid — so quarterly TDS returns stop being a spreadsheet hunt.
How the partner commission ledger works Start free — early access