Scope of provision of the section requiring deduction of tax at source from insurance commission explained

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.... with a view to providing for deduction of income-tax at source, at such rates as may be prescribed in the Finance Act of the relevant year, from payments of income by way of insurance commission. For this purpose, "insurance commission" will mean any income by way of remuneration or reward whether by way of commission or otherwise for soliciting or procuring insurance business (including business....

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.... to non-resident will have to be deducted under section 195. The rate for deduction of tax at source in the case of a non-resident individual has been specified in item 1(b)(i) of Part II of the First Schedule to the Finance Act, 1973, at 34.5 per cent (income-tax 30 per cent plus surcharge 4.5 per cent) of the income-tax by way of insurance commission or income-tax and surcharge thereon at the ra....

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....tion of income-tax at source under section 194D are being prescribed by rules. In the meanwhile, the following instructions may please be noted : (1) It will be open to the recipient of the commission to make an application to the Income-tax Officer concerned and obtain from him a certificate authorising the payer to deduct tax at such lower rate or deduct no tax, as may be appropriate to his cas....