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<h1>Tax Deduction Rules for Life Insurance Payments: Key Insights on TDS Rates, Exemptions, and Compliance Under Section 194DA</h1> Section 194DA governs Tax Deduction at Source (TDS) for life insurance policy payments to residents. The section applies to policy payments, including bonuses, with specific exemptions for certain policy types. TDS rates have varied over time, currently set at 5% (until September 2024) and will change to 2% from October 2024. No TDS is applicable for amounts not exceeding 1,00,000 annually. The provisions cover policy maturity, loan releases, and include specific conditions for premium and capital sum assured calculations.