Finance Act 2014 has introduced a new TDS provision under section�194DA in the
Income Tax Act, 1961 on the insurance policies.
As per the new section (applicable from 1st October 2014), if the policy
proceeds are not eligible for exemption under Section 10(10D) of the Act and
your total payout value for a year exceeds
Rs 100,000, then the tax deductions will be as under:
Rs 100,000, then the tax deductions will be as under:
- At 2% (for valid PAN registered with us)
- At 20% (for valid PAN not registered with us)
The applicable deduction will be withheld by us before releasing the payment
and the same shall be deposited with Government authorities.
In case valid PAN details are not available with us, TDS certificates would
not be generated from Income Tax website. Also, in the absence of PAN, TDS
credit would not get reflected in Form 26AS.
