Home > Income Tax > TDS > TDS on Payment in respect of Life Insurance Policies – Section 194DA

TDS on Payment in respect of Life Insurance Policies – Section 194DA

Insurance company paying amount to a resident under a life insurance policy including bonus is liable to deduct TDS @ 1% (2% before 1st June 2016). TDS is to be deducted only when such sum is not exempt from income tax under section 10(10D). 

Also tds is to be deducted only when the amount paid to a person during the financial year is rs. 1 lakh or more.

 

About Rohit Pithisaria

Rohit Pithisaria founded TaxAdda in July 2012. He is Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He is actively writing from very beginning of his professional career and is author of various tax articles and blogs.