TDS From Insurance Commission (Sec 194D) (FY 2024-25)

TDS on Insurance Commission u/s 194D: As per the provision of section 194D any person who is paying insurance commission is required to deduct tax at source. In this article, we will discuss the complete procedure of how to deduct TDS, TDS returns, TDS rate, TDs exemption limit,  TDS payment u/s 194D etc. Please read the complete article to get the complete procedure about TDS on insurance commission under section 194D. You can ask your queries in the comment sections.

TDS from Insurance Commission

194D – TDS from Insurance Commission – Quick Summary

Person Responsible to Deduct Tax Insurance companies
Exemption Limit Rs.15,000
Time of Deduction of TDS At the time of payment or credit whichever is earlier.
TDS Rate 10%
Time for Deposit of TDS Within one week from the day of the month of tax deduction. For the month of March, before 30th April.
Certificate of TDS Form 16A for each quarter is to be issued within 15 days from the due date for furnishing the statement of tax deducted at source under rule 31A i.e. on or before 15th August, 15th November, 15th February and 15th June
Quarterly Return of TDS In Form No.26Q on or before 31st July, 31st October and 31st January for the first three quarters and on or before 31st May for the last quarter.
AO’s Certificate for Deduction at Lower Rate or Non-Deduction Yes, Application in Form No. 13 Appropriate Certificate to be issued by AO
Is Self Declaration by Payee for Non-Deduction Admissible Yes, it can be filed, by a person other than Company or Firm. Declaration to be submitted in duplicate in Form No. 15G/ 15H.

Who is Required to Deduct TDS u/s 194D?

Any person responsible for paying insurance commission is required to deduct tax at source under the provision of section 194D. For this purpose, the payer himself is treated as the person responsible for paying the insurance commission. If, however, the payer is a company, the company itself, including the principal officer thereof, is the person responsible for paying the insurance commission.

Exemption Limit (TDS from Insurance Commission)

  • There is no need to deduct tax at source if the amount of insurance commission does not exceed Rs.15,000/-

Time Limit to Deduct TDS 

The tax is to be deducted from the insurance commission under section 194D at the time of the earliest of the following situations.

  • The tax is to be deducted at the time of credit of commission in the account of the payee
  • The payment with cash or cheque or in-kind

Time Limit to Deposit TDS u/s 194D

The duty of the payer deducts tax on time as well as deposits the same in time.  There is a time limit provided in rule 30 to deposit TDS from the insurance commission under section 194D. Here is the time limit.

When Payer is Government: 

Income Tax Challan (with or not) Time Limit
Tax deposited without production of any tax challan Same day
Having tax challan on or before 7 days from the end of the month in which tax is deducted

When Payer is Any Other Person:

Period Time Limit
Jan to Feb Months within one week from the last date of the month in which tax is deducted
March Month on or before 30th April after the end of the financial year

Payment Through Challan: The tax deducted at source from insurance commission under section 194D is required to be deposited in Challan No. ITNS 281.

Here is the link to deposit TDS online – Visit Here

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

Time limit to Issue TDS Certificate

The payer is required to issue a quarterly certificate of tax deduction to the payment in Form No.16A. The payee can download form 16A (TDS certificate of Tax deduction from insurance commission) from TRACES portal website.

Quarter Ends Time Limit
30th June 15th August
30th September 15th November
31st December 15th February
31st March 15th June

TDS Return u/s 194D (TDS from Insurance Commission)

The payer who deducts TDS on insurance commission under section 194D shall submit TDS return quarterly in the Form 16Q as per the time limit given below.

Quarter Ends Time Limit
30th June 31st July
30th September 31st October
31st December 31st January
31st March 31st May
Categories TDS

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