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.
It won’t be wrong to say that, every 8 out of 10 people in India opt for Life Insurance Policy. And why not, no one can predict future, hence to save oneself from any future mishap people go for life insurance.
But you’ll be surprised to know that payment received on maturity of insurance policy attracts provisions of tax deduction u/s 194DA if the policy is not exempt under section 10(10D). Let’s understand it as follows:
Any person who is paying an amount to a resident by way of insurance policy (including bonus amount, if any) will have to deduct tax before releasing the amount.What is the rate & time of tax deduction u/s 194DA?
The rate of tax u/s 194DA is 1% at the time of making the payment.No TDS Requirement :
In the below-mentioned situations, no TDS will be required u/s 194DA.
Ans: Rate of deduction of TDS is 5%.
Ans: Yes TDS is deducted if the total income of the assessee exceeds the total amount which is not chargeable tax.
Ans: TDS on commission is 5%
Ans: For commission agent GST is applicable therefore on commission income GST is chargeable.
Ans: Section 195 is the sec of TDS deducted on the non resident.There are various rate for TDS under section 195 these are covered under 10% to 30% bracket.
Ans: An individual or member of HUF who is liable to pay any type of commission or brokerage is liable for tax deduction on commission payment made.
Ans: The threshold limit for TDS on commission is 15000.
Complete guide covering all the basic tax related terms. So, that tax terms will not work as a road-stopper in your way!!
Comprehensive Guide containing all Information that you must know while filing of your ITR for FY 2018-19 (AY 2019-20).
Free Income Tax Calculator for Assessment Year (AY) 2018-2019 and AY 2017-2018 with new budget changes.
Calculate HRA exemption based on your salary for AY 2018-19. Make accurate calculations of HRA for employees.
Hire smartest eCA's to File Your Income Tax Return. CA Assisted Filing of ITR. File your Income Tax Return with confidence and ease.
Tax2win is an efiling portal to prepare and efile income tax return Online. Tax2win helps individuals to file their income tax return.