Is TDS applicable on the proceeds from life insurance policy?
Is TDS applicable on the proceeds from life insurance policy?
Jeeba Jul. 05, 2018
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.
