Verification of agent authenticity required before issuing lower tax deduction certificate; withhold if agent appears benami. Applications for certificates under section 197(1)(a) for lower or nil tax deduction on insurance commission must be promptly decided and only issued after verifying the applicant is the real agent; certificates must be withheld if evidence indicates a benami or fictitious agent. Verification should confirm procurement of business and receipt/encashment of commission cheques and validate addresses, with special scrutiny for lady agents, staff agents, or relatives, and a list kept of suspected benami cases for further enquiries to identify the true recipient of commission.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Verification of agent authenticity required before issuing lower tax deduction certificate; withhold if agent appears benami.
Applications for certificates under section 197(1)(a) for lower or nil tax deduction on insurance commission must be promptly decided and only issued after verifying the applicant is the real agent; certificates must be withheld if evidence indicates a benami or fictitious agent. Verification should confirm procurement of business and receipt/encashment of commission cheques and validate addresses, with special scrutiny for lady agents, staff agents, or relatives, and a list kept of suspected benami cases for further enquiries to identify the true recipient of commission.
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