Sec 194D tds on insurance commission

Individuals and Hindu Undivided Family who were covered under section 44AB are also required to deduct TDS. From FY 2020-21, individual and HUF whose turnover from business is above Rs 1 crore or gross recipts from profession are above Rs 50 lakh are also required to deduct TDS.
Section 194H does not include insurance commission referred to in section 194D.

Thanks Souravji , sec 194D is silent on Audit requirement as mentioned in sec 194H and shared by you. In this case insurance agent was not liable for audit in preceding year. Still AO has disallowed 30% as not deducted TDS.

You should go in appeal

Section 194D (now Section 393 of the Income Tax Act 2025 from April 2026) covers TDS on insurance commission payments.

Key rates for FY 2026-27:
- Rate: 5% for individuals and HUFs
- Rate: 10% for domestic companies
- Rate: 20% if PAN is not furnished
- Threshold: Rs 20,000 per year (increased from Rs 15,000 from April 2025)

If the total commission paid to an agent in a financial year does not exceed Rs 20,000, no TDS is required. Once it crosses Rs 20,000, TDS applies on the full amount including the first Rs 20,000.

For the insurance company deducting TDS:
- Deposit TDS by the 7th of the next month (30th April for March)
- File quarterly TDS return in Form 26Q
- Issue Form 16A (TDS certificate) to the agent within 15 days of the due date of the TDS return

For the insurance agent receiving commission:
- Check Form 26AS and AIS for TDS credited
- Report commission income under Schedule BP or Schedule OS in ITR and claim TDS credit in Schedule TDS2

This [TDS on insurance commission guide for FY 2026-27](https://taxgarden.in/blog/tds-on-insurance-commission-section-194d-393-guide-india) covers the new Section 393 reference and filing steps.