Commission and brokerage withholding requires deduction at credit or payment, with distinct deductor and rate rules for insurance payments.

Section 393(1) requires TDS on insurance commission and on commission or brokerage other than insurance commission. Insurance-related remuneration is deductible by any person at rates in force, subject to a Rs.20,000 threshold. Other commission or brokerage is deductible at 2% by a specified person, subject to the same threshold. In both cases, deduction is required at the earlier of credit or payment. Section 393(4) contains an exception from tax deduction for the specified entry.

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