Tds

This query is : Resolved

Share Report Follow Query Ask a Query

vaishali

vaishali (Querist)
Follow

21 July 2015 Can we avoid TDS On LIC commission..??
Please reply as soon as possible

vaishali

vaishali (Querist)
Follow

21 July 2015 Can we avoid TDS On LIC commission

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

27 July 2025 Regarding your query about **avoiding TDS on LIC commission**:

* **TDS on commission paid to LIC agents** is governed under **Section 194H** of the Income Tax Act.
* As per the law, **if the commission amount exceeds ₹15,000 in a financial year**, the payer (insurance company or party paying commission) **must deduct TDS** at the prescribed rate (usually 5%).
* **If the commission amount is less than ₹15,000 in the year, no TDS is required to be deducted.**

### Can you avoid TDS on LIC commission?

* **No, TDS cannot be avoided if the payment exceeds the threshold limit.**
* However, if the payee (LIC agent) provides **valid PAN**, TDS will be deducted at the normal rate (5%).
* If **PAN is not provided**, TDS will be deducted at a higher rate of 20%.
* There are **no exemptions or exclusions specifically for LIC commissions** under TDS provisions.

---

### Summary:

| Condition | TDS Deduction Required? |
| ------------------------------ | ------------------------- |
| Commission paid > ₹15,000/year | Yes, TDS @ 5% (with PAN) |
| Commission paid ≤ ₹15,000/year | No TDS deduction required |
| PAN not provided | TDS @ 20% |

---

If you want, I can help you with references to the Income Tax Act or assist in TDS calculation for LIC commissions. Would you like that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Vidit Ratanghayra

Ravi Varshney

Sreekumar J Pai

Moby Mogli

Mikilesh Shah

Subscribe Now

Tds

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA