Yes,
Insurance sum received from the insurance company is subject to TDS if the proceeding is not exempted from tax.
As per section 194DA, an insurance company will deduct a TDS of 1% when procced exceeds one lac and the sum is not exempt from tax.
Please do not forget to quote PAN, if you have not PAN then 20% of TDS will be deducted.
But if a sum is received on the death of an insured person by family or legal heir and if a sum is exempt under the act, no TDS shall not be deducted.
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