Section 194H → Section 214
TDS on Commission or Brokerage
Quick Answer
Section 194H of the Income Tax Act, 1961 (TDS on Commission or Brokerage) corresponds to Section 214 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 194H
Provision Summary
TDS @ 5% on commission/brokerage exceeding Rs. 15,000.
Sec 214
Provision Summary
Retained. Rate reduced to 2% in the latest Finance Acts to ease working capital for small agents.
Key Changes & Highlights
- Statutory rate reduced from 5% to 2%.
Related Articles from the Tax Academy
corporate compliance
Guide to Section 194H TDS on Brokerage: New 2% Rate for 2026
A professional compliance guide for the transition to the new 2% TDS rate and ₹20,000 threshold for brokerage under Section 194H, aligning with the proposed Direct Tax Code 2025.
corporate compliance
DTC 2025 Compliance Guide: 43B(h) Vendor Payments & 194H TDS Changes
A professional guide for CAs and Financial Controllers on transitioning from the Income Tax Act 1961 to the Direct Tax Code 2025, focusing on MSME vendor payments (Sec 43B(h)) and TDS on brokerage (Sec 194H).
creator economy
India's New Direct Tax Code 2025: A Guide for YouTubers & Creators
Expert CA breakdown of the Direct Tax Code 2025. Learn how new tax slabs, business income rules, and TDS will impact YouTubers, freelancers, and creators.
general transition
TDS Sections Mapped: Old Income Tax Act 1961 vs New DTC 2025
A complete professional guide mapping the old TDS sections of the Income Tax Act, 1961, to the new consolidated Section 393 of the proposed Direct Tax Code 2025. Essential for CAs and businesses.
Frequently Asked Questions
What does Section 194H of the Income Tax Act 1961 deal with?
Section 194H (TDS on Commission or Brokerage) TDS @ 5% on commission/brokerage exceeding Rs. 15,000.
What is the new section number for Section 194H under the Direct Tax Code 2025?
Section 194H of the ITA 1961 maps to Section 214 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 194H under the new tax code?
Section 194H is marked as "Retained" with status "Modified". Impact: High - Affects real estate agents, insurance agents, and distributors.
What are the key changes to Section 194H under DTC 2025?
Statutory rate reduced from 5% to 2%.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
Need professional help on Section 194H?
Compare trusted providers — both offer DTC 2025-ready CA services.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?