TDS on Insurance premium

[Raj Malik]

Whether TDS be deducted on Insurance premium ??

AI Summary

TDS on Insurance Premiums: Section 194D and 194DA Clarify Applicability and Rates Based on PAN and Exemptions A query was raised regarding whether Tax Deducted at Source (TDS) should be applied to insurance premiums. One response cited Section 194D of the Income Tax Act 1961, affirming TDS applicability. Another response referenced the new Section 194DA, indicating that TDS applies to payouts exceeding 1 lakh in a financial year for policies not exempt under Section 10(10D). If a valid PAN is provided, a 2% TDS rate applies; otherwise, a 20% rate is applicable. No TDS is deducted if the policy qualifies for the exemption under Section 10(10D).