CHAPTER XVII
COLLECTION AND RECOVERY OF TAX
Payment in respect of life insurance policy.
194DA. Any person responsible for paying to a resident any sum under a life insurance policy, including the sum allocated by way of bonus on such policy, other than the amount not includible in the total income under clause (10D) of section 10, shall, at the time of payment thereof, deduct income-tax thereon at the rate of 2. [two per cent] on the amount of income comprised therein]:
Provided that no deduction under this section shall be made where the amount of such payment or, as the case may be, the aggregate amount of such payments to the payee during the financial year is less than one hundred thousand rupees.
Amendment
1. Substituted by The Finance Act, 2019 w.e.f. 01.09.2019
for the words,
one per cent
the following shall be subtituted namely,
five per cent.
2.Substituted by the Finance Bill 2024 dated 07.08.2024 w.e.f 01.10.2024
for the words,
five per cent
the following shall be subtituted namely
“two per cent.”