Tds

”194DA. Any person responsible for paying to a resident any sum under a life insurance policy, including the sum allocated by way of bonus on such policy, other than the amount not includible in the total income under clause (10D) of section 10, shall, at the time of payment thereof, deduct income-tax thereon at the rate of two per cent:

Provided that no deduction under this section shall be made where the amount of such payment or, as the case may be, the aggregate amount of such payments to the payee during the financial year is less than one hundred thousand rupees.”

Summarizing the section

·         Rate of TDS : 2%

·         No Pan cases – TDS rate is 20%

·         TDS is deductable where aggregate payment during the financial year exceeds Rupees one Lakh

·         Annuities received ie., pension plan are not covered u/s10(10D)  therefore liable for TDS subject to limit specified ie., Rupees One Lakh

·         Terminated Life Insurance contracts subject to limit specified ie., Rupees One Lakh

Exemption :

·         Aggregate payment does not exceed one lakh rupees during the Financial Year

·         Policies issued satisfying section 10(10D) and amount received on death of the person other than  Keyman insurance policy and U/s  80DD(3) or U/s. 80DDA(3)

·         Any sum received U/s  80DD(3) or U/s. 80DDA(3)

·         Any sum received under a Keyman insurance policy

So I Think Maturity Proceeds Is Liable To TDS Even In Postal Life Insurance Policy Provided To Above