Revision of rate of TDS deduction on Agents Commission w.e.f 01.10.2024 - SB Order 09/2024

Revision of TDS deduction rate on Agents Commission from 5% to 2% effective from 01-10-2024 communicated by the Postal Directorate vide in its SB Order No.09/2024 Order No.FS-79/2/2020-FS  dated 01/10/2024.

The rate of Tax Deduction at Source (TDS) for the Agent's Commission under Section 194H of the Income Tax Act has been reduced from 5% to 2% with effect from 01-10-2024.This revision is as per the Finance Bill 2024 issued by the Ministry of Finance.

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No. FS-79/2/2020-FS 

Government of India 

Ministry of Communications 

Department of Posts 

(Financial Services Division)

SB Order No. 09 / 2024

Dak Bhawan, New Delhi 110001 

Dated: 01-10.2024

To
All Head of Circles/Regions

Subject: Revision of rate of TDS deduction on Agents Commission w.e.f 01.10.2024- reg
Ref : Finance Bill 2024 issued by Ministry of Finance

Madam / Sir,

I am directed to intimate that as per the Finance Bill 2024 issued by Ministry of Finance, the rate of Tax Deduction at Source (TDS) for the Agent's Commission under Clause 57, Section 194H of the Income Tax Act, has been reduced from 5% to 2% with effect from 01-10-2024. Extract of the amendment is reproduced below:

Clause 57

"In Section 194H of the Income Tax Act, for the words "Five Percent", the words "two percent" shall be substituted with effect from 1st day of October 2024".

2.It is requested to circulate it to all concerned for information and necessary guidance. This may also be placed on the notice board of all Post Offices in public area.

3. This issues with the approval of the Competent Authority.

(P Ajit Kumar) Assistant Director (SB-I)

Copy to: -
1. Sr. PPS to Secretary (Posts)
2. PS to Director General Postal Services.

3. PPS/ PS to Addl. DG (Co-ordination)/Member (Banking)/Member (O)/Member (P)/ Member (Planning & HRD)/Member (PLI)/Member (Tech)/AS & FA

4. Addl. Director General, APS, New Delhi
5. Chief General Manager, BD Directorate / Parcel Directorate / PLI Directorate / CEPT
6. Sr. Deputy Director General (Vig) & CVO) / Sr. Deputy Director General (PAF)
7. Director, RAKNPA / Directors of all PTCs
8. Director General P & T (Audit), Civil Lines, New Delhi
9. Secretary, Postal Services Board / All Deputy Directors General
10. All General Managers (Finance) / Directors Postal Accounts / DDAP
11. The Under Secretary, MOF (DEA), NS-II Section, North Block, New Delhi.
12. The Joint Director & HOD, National Savings Institute, ICCW Building, 4 Deendayal Upadhyay Marg, New Delhi-110002
13. All recognized Federations / Unions / Associations
14. Guard File/e-File.

(P Ajit Kumar) Assistant Director (SB-I)