Tds 194 da

Any maturity proceeds of Life insurance policy including bonus is exempted as per sec 10(10D). Provided if the premium paid in a year is more than 10% of the sum assured, then this exemption is not available. In other cases, the bonus can be offered to tax in the year of declaration and the interest/increment if any should also be offered o tax under the head income from other source. Even though TDS is deducted on the entire amount, the entire amount is not subject to taxation.

In which year was the 10% Criteria Introduced?