Section 194DA of ITA, 1961 : Section 194Da: Payment In Respect Of Life Insurance Policy
ITA, 1961
JavaScript did not load properly
Some content might be missing or broken. Please try disabling content blockers or use a different browser like Chrome, Safari or Firefox.
Explanation using Example
Imagine Mr. Sharma has a life insurance policy and the policy matures, with the insurance company ready to pay out the sum assured along with a bonus. The total amount comes to ₹150,000. According to Section 194DA of the Income-tax Act, 1961, the insurance company, before making the payment to Mr. Sharma, is required to deduct tax at the rate of 1% on the payout because the amount exceeds the threshold of ₹100,000. Therefore, the insurance company will deduct ₹1,500 (1% of ₹150,000) as TDS and pay the remaining ₹148,500 to Mr. Sharma.
Update: Our Pro subscription pricing is now simplified. See our Pro plans
Update: Our AI tools are cooking — and they are almost ready to serve! Stay hungry — your invite to the table is coming soon.