Section 194H of Income Tax Act
Commission or brokerage. [Inserted by Act 14 of 2001, Section 71 (w.e.f. 1.6.2001)
What is the Income Tax on Commission or Brokerage after 01.10.2024?
(A) If any person (other than Individual/ HUF) responsible to pay any income to a Resident by the way of
Commission (other than insurance commission referred to in section 194-D))
Brokerage
Shall, at the time of Account Pay/ Cash Payment/ Issue Cheque or DD (whichever is earlier), deduct income tax at the rate of 2% (wef 01.10.2024) instead of 5% (wef 01.06.2007).
(B) For Individual and HUF shall be liable for tax deduction under Section 194H if:
Total Sales/ Turnover of the Business, in previous year, exceeds 1 crore or
Net Proceeds of Professional, in previous year, exceeds 50 Lakh Rupees
Amendment in Section 194H by Finance act 2024:
By the way of Section 57 of Finance Act 2024, Section 194H of the Income-tax Act, for the words “five per cent.”, the words “two per cent.” shall be substituted with effect from the 1st day of October, 2024.
Thus the new rate of income tax on brokerage/ commission wef 01.10.2024 is 2% instead of 5%.
Conditions for No Income Tax/ TDS on brokerage or commission:
No TDS on Brokerage/ Commission if :
The amount, such paid/ credited or likely to be paid/ credited during the Financial Year does note exceed 15000 Rupees (w.e.f. 1-6-2016).
The commission or brokerage is payable by Bharat Sanchar Nigam Limited or Mahanagar Telephone Nigam Limited to their public call office franchisees.
ALLOWABLE DEDUCTIONS/ INCENTIVES IN NEW TAX REGIME for F. Y. 2024-25 (A.Y. 2025-2026)
Sec 16 (ia) Standard Deduction to Salaried Employees Upto Rs. 75,000/- [Amended from Rs. 50,000/-]
Sec 57 (iia) Family Pension paid to the Family Member after death of Employee by Employer
Least of
(i) Rs. 25000/- [Amended from Rs. 15,000/-]
or
(ii) 1/3rd of such Family Pension Received
Sec 80 CCD (2) Employer Contribution to National Pension Scheme (NPS)
For Central & State Govt Employees – Limit is 14% of of Salary;
For Other Employees – Limit is 14% of Salary;
Sec 80 CCH Amount Deposited under the Agniveer Corpus Fund 100% Amount Deposited
Sec 80 JJA Profits and Gains from Business of Collecting and Processing of Biodegradable Waste 100% upto 5 years of commencement of business
Sec 80 LA (1A) Income of unit of an International Financial Services Center 100% for any consecutive 10 years out of first 15 years
Sec 87A Rebate 25,000/- or Tax Liability whichever is lower for Resident Individuals with income upto 7,00,000/-
EXEMPTED INCOME - In NEW TAX REGIME for F. Y. 2024-25 (A.Y. 2025-2026)
Interest and final payment under PPF [u/s 10(11)]
Interest and final payment under Sukanya Samriddh Yojna [u/s 10(11A)]
Sum received from Life Insurance Policy [10(10D)] – New Policy after 01-04-2023 limit upto 5 Lakhs annual premium
Payments including withdrawals from NPS [u/s 10(12A)/(12B)]
Gratuity [u/s 10(10)],
Commutation of Pension [u/s 10(10A)],
Leave Encashment [u/s 10(10AA)],
Retrenchment Compensation [u/s 10(10B)],
Compensation on Voluntary Retirement or Separation [u/s 10(10C)],
Non Monetary Perquisite by Employer [u/s 10(10CC)],
Interest and Withdrawal from Recognised Provident Fund [u/s 10(12)],
Payment from approved Superannuation Fund [u/s 10(13)]
Minimum Alternate Tax u/s 115JC is not applicable in case of Lower Tax Regime.
Income TAX Slabs in New Tax Regime for FY 2024-25 (AY 2025-26)
SLAB TOTAL INCOME Rate of Tax TOTAL TAX
I Upto Rs. 3,00,000/- 0 % NIL
II Rs. 3,00,001/- to Rs. 7,00,000/- 5 % (Total Income – 3,00,000) * 5%
III Rs. 7,00,001/- to Rs. 10,00,000/- 10 % 20,000 + (T.I. – 7,00,000) * 10%
IV Rs. 10,00,001/- to Rs. 12,00,000/- 15 % 50,000 + (T.I.– 10,00,000) * 15%
V Rs. 12,00,001/- to Rs.15,00,000/- 20 % 80,000 + (T.I. – 12,00,000) * 20%
VII Above Rs. 15,00,000/- 30 % 1,40,000 + (T.I. – 15,00,000) * 30%
DEDUCTIONS/ EXEMPTIONS discontinued IN NEW TAX REGIME
Leave Travel Concession [u/s 10(5)]
House Rent Allowance [u/s 10(13A)]
Special Allowance other than those as may be prescribed [u/s 10(14)]
Allowances to MP/ MLAs [u/s 10(17)]
Exemption of Rs. 1500/- for clubbed income of minor child [u/s 10(32)]
Special Economic Zone [u/s 10AA]
Entertainment Allowance Deduction [u/s 16(ii)]
Professional Tax Deduction [u/s 16(iii)]
No Adjustment of Losses brought forward from earlier years and/or Additional Depreciation of earlier years is permitted.
No adjustment for depreciated value of block of assets brought forward is permitted.
Loss on account of Interest on Home Loan [u/s 24(b)]
Additional Depreciation [u/s 32(1)(iia)]
Investment Allowance in case of Backward Area [u/s 32AD]
Tea/ Coffee/ Rubber Development Accunt [u/s 33AB]
Site Restoration Fund [u/s 33ABA]
Deduction for Scientific Research [u/s 35(1) (ii)/(iia)/(iii), 35(2AA)]
Capital Expenditure pertaining to Specified Business [u/s 35AD]
Agricultural Extension Project [u/s 35CCC]
Deduction u/s 80C to 80U [except Employers Contribution to NPS u/s 80CCD(2),
Agniveer Corpus Fund u/s 80CCH, deduction u/s 80JJA and 80LA(1A)]
No Adjustment of Losses brought forward from earlier years and/or Additional Depreciation of earlier years is permitted.
No adjustment for depreciated value of block of assets brought forward is permitted.
Income TAX Slabs in Old Tax Regime for FY 2024-25 (AY 2025-26)
SLAB TOTAL INCOME Rate of Tax TOTAL TAX
I Upto Rs. 2,50,000/- 0 % NIL
II Rs. 2,50,001/- to Rs. 5,00,000/- 5 % (Total Income – 2,50,000)*5%
III Rs. 5,00,001/- to Rs. 10,00,000/- 20 % 12500 + (T.I. – 500000)*20%
IV Above Rs. 10,00,000/- 30 % 112500+(T.I.–10,00,000)*30%
SLAB TOTAL INCOME Rate of Tax Total TAX
I Upto Rs. 3,00,000/- 0 % NIL
III Rs. 3,00,001/- to Rs. 5,00,000/- 5% (Total Income – 3,00,000)*5%
IV Rs. 5,00,001/- to Rs. 10,00,000/- 20 % 10000 + (T.I. – 500000)*20%
V Above Rs. 10,00,000/- 30 % 110000+(T.I.–10,00,000)*30%
For Senior Citizen (aged 60 years and above)
For Very Senior Citizen (aged 80 years and above)
SLAB TOTAL INCOME Rate of Tax Total TAX
I Upto Rs. 5,00,000/- 0 % NIL
II Rs. 5,00,001/- to Rs. 10,00,000/- 20 % (T.I. – 5,00,000)*20 %
V Above Rs. 10,00,000/- 30 % 1,00,000+(T.I.–10,00,000)*30%