Section 194D: TDS on Insurance Commission
This provision of tax deduction mostly hits people who work as insurance agents for companies like LIC, HDFC Insurance, ICICI Insurance etc.
Who is required to deduct TDS u/s 194D?
Any person who pays to resident an income in the form of remuneration or reward (as commission or otherwise) for generating insurance business.
What is the rate & time of tax deduction u/s 194D?
The rate of tax u/s 194D is 5%(Resident person other than the company)/10%( Domestic company) ( as the case may be). And the time of deduction is earlier of, the credit of income to the account of the payee (receiver) or actual payment (in cash, cheque, draft or other modes).
No TDS Requirement :
If the amount of such income (whether individually or in aggregate for financial year) does not exceed ?15000 then no TDS u/s 194D is required.