Running a Housing Loan DSA: Do I Need to Deduct Tax on My Friends' Commission?

Hi friends,

I am running a Housing loan DSA, and a few of my friends are conducting their business through my DSA. After receiving the commission (post TDS), I have to allocate their share of the commission. Now, my question is, as the proprietor of the DSA, is it necessary to deduct tax at the time of their payment, i.e., commission? If so, please inform me about the rate at which I should deduct the tax and what the ceiling amount for TDS is.

Thanks & Regards,
Raman
Bangalore

Dear Suba,

Please refer to the details below; I hope they will serve your purpose.

If it's related to rent, it falls under 194i Rent Property. Up to Rs. 180,000/-, no TDS is to be deducted. If it's more than Rs. 180,000/-, then 10% TDS is to be deducted on the total amount, and the same is to be deposited by the 7th of the next month.

If it's commission/brokerage, it falls under 194h. Up to Rs. 5,000/-, no TDS is to be deducted. If it's more than Rs. 5,000/-, then 10% TDS is to be deducted on the total amount, and the same is to be deposited by the 7th of the next month.