Applicability of Section 194 D

[Rahul Bagaria]

Hi

Section 194D is attracted for paying any form of remuneration to insurance agent (Cash / Kind)

Can someone suggest any way through tax planning if gifts / rewards / RnR can be avoided for TDS while distributing the same to these agents.

Thanks

Rahul

 

[CAGOPALJI AGRAWAL]

The recepient may move an application to his AO for lower deduction of tax

AI Summary

TDS on insurance agent remuneration applies to gifts and rewards; recipient can seek lower deduction from AO. Section 194D covers any remuneration to insurance agents, including cash, gifts, rewards, and recognition, making such benefits subject to TDS. The recipient may apply to the Assessing Officer for lower deduction of tax at source as a procedural measure to reduce withholding.