Amendment to Section 194H of Income-tax Act: New Tax Deduction Thresholds for Commission Payments Effective April 2020
Clause 77 of the Finance Bill, 2020, amends section 194H of the Income-tax Act, which pertains to the deduction of income tax on commission or brokerage payments. The amendment revises the monetary thresholds for individuals or Hindu undivided families required to deduct tax. Previously, these thresholds were linked to section 44AB clauses, but now they are set at one crore rupees for business and fifty lakh rupees for profession. This change affects those whose sales, gross receipts, or turnover exceed these amounts in the preceding financial year. The amendment is effective from April 1, 2020.
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