TDS on life insurance payouts requires withholding on policy settlements, subject to a threshold and exempt receipts. Deduction at source is required on sums paid under a life insurance policy, including bonuses, except to the extent those sums are excluded as tax exempt ... Summary
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TDS on life insurance payouts requires withholding on policy settlements, subject to a threshold and exempt receipts.
Deduction at source is required on sums paid under a life insurance policy, including bonuses, except to the extent those sums are excluded as tax exempt insurance receipts. The payer must deduct tax at the prescribed rate on the income component of such payments at the time of payment, but no deduction is required where the aggregate payments to the payee in a financial year fall below a specified monetary threshold.
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