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Section 194D-Payment of insurance commission to domestic companies

Table of Contents
 
  1. 194D: TDS on Insurance Commission
  2. TDS u/s 194D Deduction Requirement
  3. 194D TDS Rate & Time
  4. Exemption from TDS Deduction

194D: TDS on Insurance Commission

Insurance agents for companies like LIC, HDFC Insurance, ICICI Insurance etc. are mainly affected by this tax deduction provision. 

TDS u/s 194D Deduction Requirement

Those who pay residents income for generating insurance business must deduct TDS under this section. 

194D TDS Rate & Time

The tax rate is 5% for residents and 10% for domestic companies, or 20% if no PAN is quoted. The deduction takes place when the income is credited to the payee's account or paid by any means. 

Exemption from TDS Deduction

No TDS under 194D is required if the income does not exceed Rs. 15000 in total for the financial year or if Form 15G/H is submitted.

 

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