25 January 2016
A keyman Insurance Policy was purchased by Co. in 2005 and later it was assigned to the director of the company. He regularly pays the premium amount of the same and consequently claim deduction of the loan.
During 2014-15, the LIC policy was matured and an amount of Rs.36,70,000/- was received with details as follow: Basic Amount : 25,00,000 Vested Bonus : 10,57,500 Interim Bonus : 1,12,500 Gross Payable : 36,70.000 Now TDS has been deducted u/s 194DA of Rs.73,400/- which is 2% of Rs.36,70,000/-.
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