Life insurance not only gives you financial security but also helps to save tax. Life insurance premium paid during the financial year can be claimed as tax deduction up to a maximum limit of Rs. 1, 50,000 as specified in section 80C. Insurance companies are required to deduct tax while paying maturity proceedings to policyholders. In this article, we will be discussing the TDS … [Read more...] about TDS on Insurance payments at the time of maturity or surrender of policy
TDS
Section 194D – TDS on Insurance Commission
Section 194D of the Income Tax Act mandates TDS (Tax Deducted at Source) on insurance commissions paid to agents and brokers. As of Budget 2024, the TDS rate on insurance commissions has been reduced to 2% from the previous rate of 5%. This change aims to provide relief to insurance agents and promote the insurance sector.Eligibility for tax deduction under section … [Read more...] about Section 194D – TDS on Insurance Commission
TDS on winnings from lotteries, crossword puzzles, games, horse races – section 194B and 194BB
Tax at the rate of 30% has to be deducted if winnings are from lotteries, crossword puzzles and games including card game.The person who is responsible for making payments to the winner of lotteries, crossword puzzles and games is required to deduct tax under section 194B at the rate of 30% from the winnings amount at the time of payment.Section 194B is not applicable … [Read more...] about TDS on winnings from lotteries, crossword puzzles, games, horse races – section 194B and 194BB
Understanding TDS on Contractors: A Simple Guide to Section 194C
TDS, or Tax Deducted at Source, is a way for the government to collect income taxes directly from income sources to reduce tax evasion. Instead of waiting until later, income taxes are taken out when payments are made.TDS applies when businesses pay contractors and subcontractors for work, including labour. This is outlined in Section 194C of tax law, which is important for … [Read more...] about Understanding TDS on Contractors: A Simple Guide to Section 194C
A Guide to TDS on Rent Payments: Tax Deduction under section 194I
Tax Deducted at Source (TDS) is a system in India where a certain percentage of tax is deducted from payments made to individuals or entities, ensuring that tax is collected at the point of income generation. This system helps the government track income and prevents tax evasion. TDS applies to various payments, including salaries, interest, payments to contractors, … [Read more...] about A Guide to TDS on Rent Payments: Tax Deduction under section 194I