TDS on Telephone & Insurance Expenses
This query is : Resolved
25 January 2010
Could anybody suggest me that when telephone expenses exceeeds the limit of 50,000 during the financial year & Paid to Companies like Airtel & So on, and same regarding insurance expenses incurred in relation to private sector companies, whether TDS has to be deducted or not, and if no, then whatz the reason? Could U please tell me where it is written in the act regarding both these expenses?
25 January 2010
TDS not applicable on Telephone exps.
25 January 2010
Agree with Mr.Ram & Insurance payments also not attracted TDS
25 January 2010
Colud u Please tell me where it is mentioned in the act regarding thses expenses?
25 January 2010
Dear Sawan Kumar
Please go through Sec.194C fully
Please go through Sec.194C fully
29 January 2010
sir i had gone through 194 C many times, but i dont know what does u want to refer to? please clear this for me? its really urgent........
29 January 2010
really urgent...........
27 July 2025
Got it! Here’s a clear explanation on why **TDS is not applicable on Telephone and Insurance expenses** and where this is reflected in the Income Tax Act:
---
### 1. **TDS on Telephone Expenses**
* Telephone bills are considered as **utility expenses**.
* **Section 194C** deals with **payments to contractors** (for work, supply of labor, etc.) — telephone bills don’t qualify as contract payments.
* **Section 194J** covers **fees for professional or technical services** — telephone bills do not qualify here either.
* Therefore, **no specific provision mandates TDS deduction on telephone bills**, regardless of the amount.
* This is a standard industry practice and accepted by tax authorities.
---
### 2. **TDS on Insurance Expenses**
* Insurance premium payments (other than some specific cases like insurance commission) are payments for service but **do not fall under Sections 194C or 194J**.
* No TDS is prescribed under the Income Tax Act on insurance premium payments.
* If insurance agents or brokers receive commission, then TDS is applicable on commission under **Section 194H**, but not on the insurance premium paid to insurance companies.
---
### Where does the law say this?
* The Act **specifies only certain types of payments on which TDS must be deducted** (like salaries, interest, professional fees, contract payments, rent, commission, etc.).
* Since **telephone bills and insurance premiums do not fall under these categories, no TDS applies**.
* **Section 194C**, 194J, 194H, and related provisions do not mention telephone or insurance premium payments.
* Circulars and clarifications from CBDT also confirm **no TDS on telephone and insurance premiums**.
---
### Summary:
| Expense Type | TDS Applicable? | Relevant Section / Notes |
| ------------------ | --------------- | ----------------------------------------------------------- |
| Telephone Expenses | No | Not covered under Sections 194C/194J or any TDS section |
| Insurance Premiums | No | TDS only on commission paid (Section 194H), not on premiums |
---
---
### 1. **TDS on Telephone Expenses**
* Telephone bills are considered as **utility expenses**.
* **Section 194C** deals with **payments to contractors** (for work, supply of labor, etc.) — telephone bills don’t qualify as contract payments.
* **Section 194J** covers **fees for professional or technical services** — telephone bills do not qualify here either.
* Therefore, **no specific provision mandates TDS deduction on telephone bills**, regardless of the amount.
* This is a standard industry practice and accepted by tax authorities.
---
### 2. **TDS on Insurance Expenses**
* Insurance premium payments (other than some specific cases like insurance commission) are payments for service but **do not fall under Sections 194C or 194J**.
* No TDS is prescribed under the Income Tax Act on insurance premium payments.
* If insurance agents or brokers receive commission, then TDS is applicable on commission under **Section 194H**, but not on the insurance premium paid to insurance companies.
---
### Where does the law say this?
* The Act **specifies only certain types of payments on which TDS must be deducted** (like salaries, interest, professional fees, contract payments, rent, commission, etc.).
* Since **telephone bills and insurance premiums do not fall under these categories, no TDS applies**.
* **Section 194C**, 194J, 194H, and related provisions do not mention telephone or insurance premium payments.
* Circulars and clarifications from CBDT also confirm **no TDS on telephone and insurance premiums**.
---
### Summary:
| Expense Type | TDS Applicable? | Relevant Section / Notes |
| ------------------ | --------------- | ----------------------------------------------------------- |
| Telephone Expenses | No | Not covered under Sections 194C/194J or any TDS section |
| Insurance Premiums | No | TDS only on commission paid (Section 194H), not on premiums |
---
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Multiple payment of self assessment tax for A Y 2025-2026
- CAPITAL GAIN REDEVELOPED FLAT
- REGARDING ITR FILING QUESTION
- CLOSING STOCK QUERY
- Requirement under FEMA &RBI
- Gst reverse charge mechanism to be claimed in the month of payment
- ITR 44AD SECTION
- Missed TDS
- DUE DATE FOR ITR FILING
- Query regarding reporting of exempt foreign remuneration in ITR
- WHERE I SHOW GST 0% INVOICE IN GSTR1 (EITHER TABLE 7 OR TABLE 8)
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
