Real estate agents face a compliance stack most other professionals don't: mandatory RERA agent registration, TDS on brokerage above ₹15,000, and GST on commission once the threshold is crossed. Here's how the three interact.
Real estate agents and brokers operate under a compliance layer that's distinct from most service professionals — RERA registration is a state-level real estate regulatory requirement sitting alongside, not instead of, the usual GST and income tax obligations.
RERA Agent Registration — Is It Mandatory?
Under the Real Estate (Regulation and Development) Act, any person who facilitates the sale or purchase of property in a RERA-registered project — for a fee, commission, or other charges — must register as a real estate agent with the state RERA authority. This applies whether the agent operates independently or as part of a brokerage firm, and covers transactions in registered projects specifically (resale of individually-owned property outside a builder project has narrower RERA applicability, though many states still expect agent registration broadly).
Operating as an unregistered agent facilitating RERA-project transactions can attract penalty under the Act, independent of any tax non-compliance — this is a real estate regulatory requirement, separate from and in addition to tax registrations.
GST on Real Estate Agent Commission
Brokerage and commission income earned by a real estate agent is a taxable supply of service, standard-rated at 18% GST, once the agent's aggregate turnover crosses the ₹20 lakh threshold (₹10 lakh in special category states). There's no real-estate-specific exemption on agent commission — it's treated the same as any other professional service income for GST purposes. Agents working across states (representing developers or buyers across state lines) commonly need to register earlier than the threshold given inter-state supply rules.
TDS on Brokerage Payments — Section 194H
Anyone paying commission or brokerage above ₹15,000 in a financial year must deduct TDS at 5% under Section 194H before making the payment. For a real estate agent, this typically means the developer or seller paying the agent's commission deducts TDS upfront — agents should track Form 16A from each payer and reconcile against Form 26AS/AIS before filing their return, since commission income often comes from multiple developers/sellers across a year and reconciliation errors are common with a fragmented client base.
Income Tax Filing for a Real Estate Agent
| Situation | Form & approach |
| Commission income, opting for presumptive taxation (business income, not "profession") | ITR-4 under Section 44AD if turnover is up to ₹3 crore (95%+ digital receipts) — 6%/8% presumed profit |
| Not opting for presumptive scheme, or turnover above the limit | ITR-3 with full books of account |
Note: real estate brokerage is generally treated as a business for income tax purposes (Section 44AD), not a "specified profession" under Section 44ADA — the presumptive percentages and turnover limits differ from those applicable to doctors, lawyers, and other 44ADA professionals, so agents should use the correct scheme when evaluating presumptive taxation.
Practical Compliance Checklist
- Register as a RERA agent with the relevant state authority before facilitating any registered-project transaction
- Register for GST once commission turnover crosses ₹20 lakh, or earlier if working across state lines
- Track TDS certificates (Form 16A) from every developer/seller paying commission above ₹15,000/year
- Evaluate Section 44AD presumptive taxation (not 44ADA) against actual books each year
Real estate agents managing multiple developer relationships and cross-state transactions benefit from getting GST registration and TDS reconciliation set up correctly from the start. Our GST registration service and ITR filing service support agents through both.
Frequently Asked Questions
Is RERA agent registration the same as GST registration?
No — they're entirely separate. RERA agent registration is a state real estate regulatory requirement for anyone facilitating transactions in RERA-registered projects; GST registration is a central tax registration based on commission turnover. Most active agents need both.
Which presumptive taxation scheme applies to real estate agents — 44AD or 44ADA?
Section 44AD (business income), not Section 44ADA (specified professions) — real estate brokerage is treated as a business for income tax purposes, so the 6%/8% presumptive rates and the ₹3 crore turnover limit under 44AD apply, not the 50%/₹75 lakh figures under 44ADA.
Does an agent need to deduct TDS themselves, or is it deducted on their commission income?
For commission received, TDS is deducted by the payer (developer or seller) under Section 194H before paying the agent — the agent doesn't deduct TDS on income received. An agent would only need to deduct TDS themselves if they're separately paying sub-agents or staff above the relevant thresholds.
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