Ch.6 · Distributor Commission Structure · hard
Under which section of the Income Tax Act is TDS deducted on mutual fund distributor commission?
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EXPLANATION
TDS on mutual fund distributor commission is deducted under Section 194H of the Income Tax Act, which covers commission or brokerage payments. The current TDS rate under 194H is 5% when the commission exceeds ₹15,000 in a financial year. Distributors can submit Form 15G/15H if their income is below taxable limits.
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