TDS on life insurance payments: withholding required on specified policy payouts with threshold, exceptions, and self declaration option. TDS on life insurance payments requires the person responsible for paying any sum under a life insurance policy, including bonus amounts, to deduct tax at source at the time of payment to a resident payee, subject to specified policy based exceptions, a financial year threshold exemption, differing treatment for policy loans and death payments, and availability of prescribed self declarations to avoid deduction where the recipient's estimated tax is nil.