TaxTMI 
TaxTMI 
Deduction of income-tax at source--Section 194D of the Income-tax Act,: 1961--Deduction from Insurance Commission, etc.--Financial Year 1981-82
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....194D of the Income-tax Act,: 1961--Deduction from Insurance Commission, etc.--Financial Year 1981-82. Sir, I am directed to invite a reference to this department's Circular No. 277 (F.No. 275/18/80-ITB) dated the 21st July, 1980, (see [1981] 129 ITR (St.) 36) wherein the rates at which the deduction of income-tax was to be made during the financial year 1980-81 from payments of income by way of insurance commission under section 194D of the Income-tax Act, 1961, were intimated. The Finance Bill, 1981, introduced in Parliament on 28-2-81 proposes, in Part II of the First Schedule, the following rates for deduction of tax at source under section 194D of the Act during the financial year 1981-82:- Income-tax &nb....
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....nsurance 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 71.75% (income-tax 70% plus surcharge 1.75%). 3. The substance of the main provisions in the law in so far as they relate to deduction of income-tax from insurance commission is given hereunder:- (i) For the purposes of deduction of tax at source "insurance commission" will mean an income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring ....
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....nbsp; Chalan No.2 (IN RED COLOUR BAND) 2. Deduction of tax from payment of insurance commission made to non companies, ....