WHAT IS 194D section for TDS?
Section 194D basically covers TDS on insurance commission. Any payments made by way of : any remuneration/reward in the form of commission or otherwise , For procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance) .13-Jan-2022
1 What is section 194D? Ans: Section 194D covers the provisions relating to deduction of TDS on insurance commission. As per section 194D, any person making payment to a resident as the insurance commission or any other remuneration / reward is required to deduct TDS.20-Jul-2019
What is the TDS rate for insurance commission?
TDS Rate on Insurance Commission Under Section 194D The TDS rate for A resident taxpayer (not being a domestic company) for the period 14 May 2020 until 31 March 2021 is 3.75%. There is no change in the TDS rate for a deductee or payee who is a domestic company.13-Jul-2021
The rate of tax deducted at source (TDS) on life insurance policies where maturity proceeds are taxable has been halved from 2% to 1%. Under section 194DA, TDS is applicable on all taxable payments made to them if the total amount exceeds Rs 1 lakh.
Who is liable to deduct TDS u/s 194J?
Section 194J stated that any person who is paying fees to any resident person for specified services, then TDS is required to be deducted u/s 194J. However,TDS is to be deducted when amount of payment in a year exceeds Rs. 30,000/- at the rate of 10%.03-Aug-2022
The union budget 2019 has proposed to amend the TDS on insurance policy proceeds to 5% on the amount of income comprised in the proceeds paid or payable upon maturity on or after 1st September 2019.13-Jan-2022
Why there is no TDS on insurance premium?
Such a commission, remuneration, or a reward attracts tax deduction at source under section 194D on Income Tax Act, 1961. TDS is not applicable for insurance premiums. An employer cannot claim TDS benefit on insurance premiums as insurance company will not accept deduction of TDS amount on insurance premiums.
No, TDS is not applicable to services using technology -- telephone charges, Internet charges, cable TV, leased lines or when it is not under 194J.
Is TDS applicable on vehicle maintenance?
Explore our Full detailed Article on TDS. TDS on repair and maintenance is required to be deducted under Section 194C of Income Tax Act 1961 at the rate of 1% or 2% (as the case may be) for payments to residents.
Whereas, in case of Non-Resident payee, TDS on dividend shall be @ 10% & that on interest payment shall be @ 5%. - The TDS at the rate of 31.20% and 41.60%is applicable on Non-resident Indians and foreign company respectively.
What is the TDS rate for 2022 23?
TDS Rate Chart for FY 2022-23
The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.
IS 194D taxable?
Rate of TDS The TDS rate under section 194D was 3.75% for non-company deductees and 10% for domestic company deductees for payments from 14th May 2020 until 31st March 2021. Surcharge or SHEC will not be added to these rates. Therefore, the tax will be deducted at the source at the basic rates mentioned above.12-Oct-2021
2 types
Where Is TDS applicable?
TDS is applicable on various incomes such as salaries, interest received, commission received, dividends etc. TDS is not applicable to all incomes and persons for all transactions. Different TDS rates have been prescribed by the Income-tax Act,1961 for different payments and different categories of recipients.01-Mar-2022
u/s 194J(a) of the Income Tax Act, is related to TDS deduction on fees for Technical Services, and u/s 194J(b) of the Income Tax Act is related to TDS deduction on fees for Professional Services.23-Nov-2021
What is 194J A and 194J B?
(i) Section 194J(A) of the Income Tax Act is related to TDS deduction on any sum paying as fees for Technical Services. (ii) Section 194J(B) of the Income Tax Act is related to TDS deduction on any sum paying as fees for Professional Services. 4. Distribution or exhibition of cinematographic films.28-Aug-2021
Fees for Technical Services (FTS) have been defined in Section 9 itself under clause (vii) as any consideration (including lump sum) for rendering of any managerial, technical or professional services including the services of technical or other personnel.
Is maturity value of LIC taxable?
Any amount received at the time of maturity of the insurance policy (including any bonus received) is exempted from the levy of any income tax under Section 10(10D) of the Income Tax Act.
The maturity proceeds of a life insurance policy enjoy exemption under section 10(10d) of income tax act provided the premium paid in respect of the life insurance policy does not exceed 10% of the sum assured for any year during the premium paying term for the policies issued after 01-04-2012.06-Nov-2021
How do I claim 10 10D exemption?
Taxability as per fifth proviso to clause (10D) of section 10 of the Act: The surrender value of ULIP “X” and consideration received under ULIP “Y” on maturity will be exempt under clause (10D) since the annual premium does not exceed Rs 2,50,000 during the term of these policies.19-Jan-2022
WHAT IS 194D section for TDS?