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<h1>Payers must deduct 2% TDS under Section 194DA on income component of life insurance payouts exceeding ?100,000, excluding exempt amounts</h1> Any person paying a resident any sum under a life insurance policy, including allocated bonuses but excluding amounts exempt under the law, must deduct tax at source at two percent on the income component at the time of payment; no deduction is required if the single payment or aggregate payments to the recipient in the financial year are less than ?100,000.