COMMISSION LIMIT FOR TDS MAY BE INCREASED

The revenue department has agreed to consider a request from the Department of Telecom to increase the annual commission limit of Rs. 2,500 for the purpose of Tax Deducted at Source (TDS). At present, anyone paying more than Rs. 2,500 by way of commission in a year has to deduct TDS at the rate of 5 per cent under Section 194 H of the Income Tax Act, 1961. Increasing the limit will leave small commission agent out of TDS ambit.