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Sec 194D

27 November 2018

assessee is individual and not under audit.
he is insurance agent.
is he liable to deduct TDS us 194D for commission paid

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4 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 27 November 2018

No, Tds is deducted by the person having TAN

bhavesh thakkar (21 Points)
Replied 27 November 2018

income tax office disallowed expenses for non deduction of TDS as sec says any person and no mention about audit case or TAN no

Z (Tax Consultation (US and India)) (2970 Points)
Replied 27 November 2018

Originally posted by : bhavesh thakkar
	assessee is individual and not under audit.he is insurance agent.is he liable to deduct TDS us 194D for commission paid

Generally, individual assessees "receives" the commission for procuring/soliciting the insurance business. But you have mentioned that he has made the payment.

If that's the case then, yes, there was a liability to deduct tax at source as S.194D read as

Any person responsible for paying to a resident any income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance) shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force :

I wish to know the role played by the assessee. What is the nature of his position?

(10) "insurance agent" means an insurance agent licensed under Sec. 42 who receives agrees to receive payment by way of commission or other remuneration in consideration of his soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance;

40. (1) No person shall after the expiry of six months from the commencement of this Act, pay or contract to pay any remuneration or reward whether by way of commission or otherwise for soliciting or procuring insurance business in India to any person except an insurance agent or an intermediary or insurance intermediary