Tax deduction on insurance commission: mandatory withholding at payment or credit with distinct resident and non-resident rules. Deduction of tax at source is required on remuneration or reward for soliciting or procuring insurance business under section 194D, to be made at payment or credit, with a resident exemption threshold; no exemption applies to non-residents and credits to any account are treated as payment. Withholding rates differ for persons and domestic companies and are subject to a surcharge; non-resident and foreign company payments attract separate higher rates. Payers must quote TAN, file returns, remit withheld tax within prescribed time, and face penalties and criminal sanction for failure to deduct or pay withheld tax.