Section 194DA

Section 194DA deals with TDS @  1% (was 2% upto 31.05.2016) on any sum (including Bonus) paid under a Life Insurance Policy to the policyholder.

Deductor : Insurance Companies

Payee (who receives sum): Resident person

When to deduct? - At the time of payment + if any of below condition satisfied:

1. If the sum paid to policyholder is NOT EXEMPT u/s 10(10D);

 2. If sum/aggregate of such sums EXCEEDS Rs. 1,00,000