Government of India’s Department of Posts issued SB Order No. 09/2024 regarding the revised rate of Tax Deduction at Source (TDS) on agent commissions. Effective from October 1, 2024, the TDS rate for commissions paid to agents under Clause 57, Section 194H of the Income Tax Act, has been reduced from 5% to 2%. This amendment was introduced in the Finance Bill 2024 by the Ministry of Finance. The revised rate is applicable from the stated date, and the order instructs all concerned departments and post offices to circulate the information for necessary action and guidance.
No. FS-79/2/2020-FS
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)
Dak Bhawan, New Delhi – 110001
SB Order No. 09/2024 Dated: 01-10.2024
To
All Head of Circles/Regions
Subject: Revision of rate of TDS deduction on Agents Commission w.e.f 01.10.2024- reg
Ref: Finance Bill 2024 issued by Ministry of Finance
Madam / Sir,
I am directed to intimate that as per the Finance Bill 2024 issued by Ministry of Finance, the rate of Tax Deduction at Source (TDS) for the Agent’s Commission under Clause 57, Section 194H of the Income Tax Act, has been reduced from 5% to 2% with effect from 01-10-2024. Extract of the amendment is reproduced below:
Clause 57,
“In Section 194H of the Income Tax Act, for the words “Five Percent”, the words “two percent” shall be substituted with effect from 1st day of October 2024″.
2. It is requested to circulate it to all concerned for information and necessary guidance. This may also be placed on the notice board of all Post Offices in public area.
3. This issues with the approval of the Competent Authority.
(P Ajit Kumar)
Assistant Director (SB-I)
Copy to: –
1.Sr. PPS to Secretary (Posts)
2. PS to Director General Postal Services.
3. PPS/ PS to Addl. DG (Co-ordination)/Member (Banking)/Member (0)/Member (P)/ Member (Planning & HRD)/Member (PLI)/Member (Tech)/AS & FA
4. Addl. Director General, APS, New Delhi
5. Chief General Manager, BD Directorate / Parcel Directorate / PLI Directorate / CEPT
6. Sr. Deputy Director General (Vig) & CVO) / Sr. Deputy Director General (PAF)
7. Director, RAKNPA / Directors of all PTCs
8. Director General P & T (Audit), Civil Lines, New Delhi
9. Secretary, Postal Services Board / All Deputy Directors General
10. All General Managers (Finance) / Directors Postal Accounts / DDAP
11. The Under Secretary, MOF (DEA), NS-II Section, North Block, New Delhi.
12. The Joint Director & HOD, National Savings Institute, ICCW Building, 4 Deendayal Upadhyay Marg, New Delhi-110002
13. All recognized Federations / Unions / Associations
14. Guard File/e-File.
P. Ajit Kumar)
Assistant Director (SB-I)
The service provider given the service in the month of Sept but billed in the month of October in this case which TDS rate is applicable 5% or 2% please clarify