Deduction of income-tax at source--Section 194D of the Income-tax Act, 1961--Deduction from insurance commission, etc.--Financial year 1979-80

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.... a reference to this Department's Circular No. 237 F.No. 275/12/78-ITB) dated the 15th April, 1978, (See [1979] 117 ITR (St.) 13) on the above subject. 2. Section 194D of the Income-tax Act, 1961, provides for the deduction of tax at source, at such rates as may be specified in this behalf by the Finance Act of the relevant year from payments of income by way of insurance commission, to a resident, whether an individual, a company or any other category of person. The rates for deduction of tax at source for the financial year 1979-80, as specified in Part II of the First Schedule to the Finance Act, 1979, are as below: Income-tax Surcharge I. In the case of a person other than a company 10 per cent Nil ; II. In th....

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....surcharge 6%) of the income by way of insurance commission or income-tax and surcharge thereon at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of the said Schedule (extracts given in Annexure), if such income had been the total income of such person, whichever is higher. In the case of a company which is not a domestic company, tax is to be deducted at the rate of 75.25% (income-tax 70% plus surcharge 5.25%). 4. It is requested that deduction of tax at source from payments of income by way insurance commission may be made during the financial year 1979-80, on payments made after 31st March, 1979, according to the above rates. 5. The substance of the main provisions in the law in so far as they relate to deduction....

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....No. 2 (ITNS 39A) - Deduction of tax from payment of insurance commission made to non-companies Challan No. 8 (ITNS 39A) Where the payment of tax includes any surcharge, it should be shown separately in the challan at the space provided for that purpose. (v) In view of the existing provisions in section 288B of the Income-tax Act, 1961, the amount of tax to be deducted at source should be rounded off to the nearest rupee by ignoring the amounts less than 50 paise and increasing the amounts of 50 paise or more to one rupee. (vi) At the time of deducting tax from the insurance commission credited to an agent's account, adjustment for any debits made in his account in respect of excess commission credited or paid to him earlie....