What is Commission or brokerage? What is Payment on transfer of certain immovable property other than agricultural land? Section 194H and 194IA of Income Tax Act 1961
Commission or brokerage and Payment on transfer of certain immovable property other than agricultural land are defined under section 194H and 194IA of Income Tax Act 1961. Provisions under these Sections are :
Section 194H of Income Tax Act "Commission or brokerage"
Section 194H. Any person, not being an individual or a
Hindu undivided family, who is responsible for paying, on or
after the 1st day of June, 2001, to a resident, any income
by way of commission (not being insurance commission
referred to in section 194D) or brokerage, shall, at the
time of credit of such income to the account of the payee or
at the time of payment of such income in cash or by the
issue of a cheque or draft or by any other mode, whichever
is earlier, deduct income-tax thereon at the rate of ten per
Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such commission or brokerage is credited or paid, shall be liable to deduct income-tax under this section:
Provided also that no deduction shall be made under this
section on any commission or brokerage payable by Bharat
Sanchar Nigam Limited or Mahanagar Telephone Nigam Limited
to their public call office franchisees.
(i) "commission or brokerage" includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities;
(ii) the expression "professional services" means services rendered by a person in the course of carrying on a legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or such other profession as is notified by the Board for the purposes of section 44AA;
(iii) the expression "securities" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) ;
(iv) where any income is credited to any account, whether called "Suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.
Section 194 - IA of Income Tax Act "Payment on transfer of certain immovable property other than agricultural land"
Section 194-IA. (1) Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent of such sum as income-tax thereon.
(2) No deduction under sub-section (1) shall be made where the consi-deration for the transfer of an immovable property is less than fifty lakh rupees.
(3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.
Explanation.-For the purposes of this section,-
(b) "immovable property" means any land (other than agricultural land) or any building or part of a building.
What is the procedure of Assessment when section 184 not complied with? What is change in constitution of a firm? What is succession of one firm by another firm? Section 185, 187 and 188 of Income Tax Act 1961