TDS on life insurance payouts requires withholding at specified rate on taxable policy payments to resident payees.

Persons paying sums under life insurance policies to resident payees must deduct income tax at a specified rate at the time of payment on sums paid under the policy, including bonuses, except for amounts excluded from taxable income by the insurance exemption; no deduction is required where the single payment or aggregate payments in the financial year do not exceed the threshold.

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