TDS Rate on Payments of Insurance Commission under section 194D of Income Tax Act

What is the TDS Rate on Payments of Insurance Commission under section 194D of Income Tax Act?

TDS Rate of 10% will be applicable on payment of commission for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance) shall, at the time of credit of such income to the account of the payee or at the time of payment by resident to any other person, and then they have to deduct TDS at the rate of 10% but insurance commission for financial year should be greater than Rs 20000/-(exceed twenty thousand rupees). So Not TDS on Insurance commission is payment for financial year is less than Rs 20000/-

Reference: Section 194D of the Income Tax Act, 1961

Insurance commission

194D. Any person responsible for paying to a resident any income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance) shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force :

Provided that no deduction shall be made under this section from any such income credited or paid before the 1st day of June, 1973:

Provided further that no deduction shall be made under this section in a case where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee, does not exceed twenty thousand rupees.

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