Brief Note on TDS Under Section 194H

Section 194H is for income tax deducted on any income by way of commission or brokerage, by any person responsible for paying to a resident. Individuals and Hindu Undivided Family who were covered under section 44AB are also required to deduct TDS. Section 194H does not include insurance commission referred to in section 194D.



TDS Deductive on Payment of Rent paid by Individuals and HUF

In the case of rent paid to residents, Section 194IB has been inserted with effect from 1st June 2017, which is related to TDS on Rent paid by Individuals and HUF to Residents. The article discusses Provisions related to TDS under Section 194IB on Rent paid by Individuals and HUF to Residents.



“The hardest thing in the world to understand is the Income Tax.”- This quote has come from an all-time great scientist and genius Albert Einstein. Indeed, taxation laws are highly complex. Entrepreneurs, traders, and individuals often get baffled in computing tax on their income. One of our taxable incomes is interest on FD or any investment.

Banks, by rule, have to deduct TDS (Tax Deducted at Source) when your interest income is more than INR 10000 a year. The bank includes all your deposits, from all the branches, to calculate this income. But what if our total income is below the taxable limit? The government has given the provision to request banks not to deduct any TDS on interest if our income is not taxable. Forms 15G and 15H are used for this purpose.


A. TDS-related amendments


Several amendments have been proposed in the sections dealing with the deduction of tax at source.

1. Requirement for obtaining evidence/ particulars by employer for TDS–Section 192



  • The real estate sector in India is one of the largest drivers of the country’s economic growth.
  • Real estate in India contributes massively to the country’s GDP.
  • Currently, the Indian Real Estate Market has a market size of approx USD 70 billion [INR 3.8 lakh crore] and is expected to touch the market size of USD 180 billion [INR 10 lakh crore] by the year 2020.


Q 1. What is tax deducted at source?

  • For quick and efficient collection of taxes, the Income-tax Law has incorporated a system of deduction of tax at the point of generation of income. This system is called as Tax Deducted at Source, commonly known as TDS. Under this system tax is deducted at the origin of the income. Tax is deducted by the payer and the same is directly remitted to the Government by the payer on behalf of the payee.
  • The provisions of deduction of tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. In respect of payments to which the TDS provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by him to the credit of the Government.
  • The following illustration will explain the TDS mechanism.

Financial Management