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Tds on insurance premium.

Guru prasath (Employee- Finance) (61 Points)

17 June 2016

Hi all,

Our company has taken insurance for directors & officers. Also insurance is taken on assets of the company. Do we need to deduct tds on premiums for those 2 policies? If so , at what rate do we need to deduct . Please reply with explanation.

Thanks in Advance..

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3 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 17 June 2016

As I understand, TDS is not applicable on insurance premium as it is not covered within the purview of TDS. Hence no need to deduct it from premium.

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Guru prasath (Employee- Finance) (61 Points)
Replied 17 June 2016

Thanks Poornima..

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 18 June 2016

Agree with Poornima Ji TDS Provisions are exhaustive provisions. They just provide the nature of incomes on which TDS is required to be deducted. Apart from those incomes, TDS is NOT required to be deducted on any payments.