A critical analysis on the provisions of Tax Deductions at sources with respect to rental income & brokerage /commission income on immovable Properties (Updated as per Finance Act , 2020)
In order to enhance the effectiveness of the discussion, I would like to present it in Frequently asked questions and answers Mode –
1) Normally in practical world, Brokers and Real estate agents involves in the deals related to buying /selling of properties or Renting /leasing out or properties.
They charge brokerage /commissions from either parties or sometimes from both.
Discuss the Provisions of Tax deduction at Sources with regards to such payments made to the Brokers /real estate agents ?
Ans – Chapter XVII- B of Income Tax Act , 1961, contains section 194H which deals with Deductions of Taxes at Sources from the payment made to the Resident persons which is in the nature of commission or brokerage.
The threshold limits for the purposes of Section 194H shall be 15,000 p.a. and the Rates of TDS shall be 5%.
Read on me: https://taxguru.in/income-tax/tds-rent-brokerage-immovable-properties.html
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