Tax deduction at source on life insurance redemption income increased, excluding amounts exempt under life insurance exemption provision. Amendment increases the tax deduction at source under section 194DA to apply to the income component of sums payable on redemption of life insurance policies, including bonuses, while excluding amounts that are statutorily exempt as life insurance proceeds. The change shifts the levy to the taxable income element of policy payouts and raises the applicable withholding rate, effective from 1st September, 2019.
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Provisions expressly mentioned in the judgment/order text.
Tax deduction at source on life insurance redemption income increased, excluding amounts exempt under life insurance exemption provision.
Amendment increases the tax deduction at source under section 194DA to apply to the income component of sums payable on redemption of life insurance policies, including bonuses, while excluding amounts that are statutorily exempt as life insurance proceeds. The change shifts the levy to the taxable income element of policy payouts and raises the applicable withholding rate, effective from 1st September, 2019.
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