TDS & GST TDS ON PAYMENT OF HEALTH INSURANCE PREMIUM

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This query is : Resolved

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This discussion clarifies whether Tax Deducted at Source (TDS) and GST TDS apply to health insurance premiums paid by an organisation for its employees. The consensus is that TDS is generally not applicable to insurance premiums, even for government organisations. The GST is charged by the insurance company, and the paying organisation does not need to deduct TDS on this payment.

Ravi Agarwal

Ravi Agarwal (Querist)
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28 July 2020 MY ORGANISATION IS TAKING A HEALTH INSURANCE FOR ALL ITS EMPLOYEES. TOTAL PREMIUM AMOUNT IS APPROX RS. 10LAKHS.

IS TDS AND GST TDS REQUIRED TO BE DEDUCTED BEFORE MAKING PAYMENT.

priya

priya (Expert)
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28 July 2020 GST shall be charged by Insurance company, and TDS is not deducted while paying insurance premium. Therefore your organisation need not to deduct anything.

Ravi Agarwal

Ravi Agarwal (Querist)
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28 July 2020 We are also not required to deduct GST TDS as ours is a government organisation ?

priya

priya (Expert)
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28 July 2020 No, You are not required to deduct TDS, though government organization. There is no TDS on any kind of insurance payments.

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