Exemption from tax deduction on commission payments hinges on PAN submission and annual reporting to tax authorities. Exemption under clause (a) of sub-section (2) of section 194H exempts payers of commission or brokerage to commission agents or dealers in the food-grain trade where the agents, being residents, furnish their Permanent Account Number and the payers file with the Commissioner of Income-tax, within two months of the end of the financial year, a list of agents or dealers in whose cases tax was not deducted at source, with addresses and amounts of commission or brokerage paid.