TDS on life insurance payouts requires payers to withhold tax at source, with an exemption for small aggregate payments. Any person responsible for paying to a resident any sum under a life insurance policy, including sums allocated by way of bonus, other than amounts not includible in total income under the insurance exemption, shall at the time of payment deduct income-tax thereon at the rate of two per cent; provided no deduction shall be made where the amount of such payment or the aggregate amount of such payments to the payee during the financial year is below the specified threshold.
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Provisions expressly mentioned in the judgment/order text.
TDS on life insurance payouts requires payers to withhold tax at source, with an exemption for small aggregate payments.
Any person responsible for paying to a resident any sum under a life insurance policy, including sums allocated by way of bonus, other than amounts not includible in total income under the insurance exemption, shall at the time of payment deduct income-tax thereon at the rate of two per cent; provided no deduction shall be made where the amount of such payment or the aggregate amount of such payments to the payee during the financial year is below the specified threshold.
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