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 4[five] per cent :
Provided that no deduction shall be made under this section
in a case where the amount of such income or, as the case may be, the aggregate
of the amounts of such income credited or paid or likely to be credited or paid
during the financial year to the account of, or to, the payee, does not exceed
two thousand five hundred rupees :
5[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.]
Explanation.—For the purposes of this section,—
(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)6 ;
(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.]