Lower TDS rate of 2% on life insurance payouts from Oct 1, 2024 to simplify taxation of capital gains.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Section 194DA mandates tax deduction at source (TDS) at 5% on payments made under life insurance policies, excluding exempt amounts. The proposed amendment reduces the TDS rate from 5% to 2%, effective October 1, 2024, rationalizing and simplifying taxation of capital gains from life insurance policies.....