Tds on brokerage

This query is : Resolved

parimal kar (Querist)
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04 February 2013 Sir,
If a brokerage Of Rs80000 is paid to an indivisual who have no other source of income. Is it necessary to deduct TDS as the amount is more than the examption limit of Rs 5000.
This broker is asking us not to deduct TDS as he not an assessee,having PAN,under IT Act,as he is not filling IT return for not having income of More than Rs2 lacs .

Prakash Kochar

Prakash Kochar (Expert)
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08 February 2013 It is necessary to deduct TDS, unless broker produces a certificate from AO for not to deduct tax or to deduct at lower rate. If deductee is not holding PAN tax is to be deducted at 20%.