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Tds on insurance premium.

TDS 222 views 3 replies

Guru prasath

Employee- Finance

61 Points Joined August 2010

Hi all,

Our company has taken insurance for directors & officers. Also insurance is taken on assets of the company. Do we need to deduct tds on premiums for those 2 policies? If so , at what rate do we need to deduct . Please reply with explanation.

Thanks in Advance..

Replies (3)

CMA Poornima Madhava

CMA

13117 Points Joined May 2009

As I understand, TDS is not applicable on insurance premium as it is not covered within the purview of TDS. Hence no need to deduct it from premium.

Guru prasath

Employee- Finance

61 Points Joined August 2010

Thanks Poornima..

Vishal Goel

Chartered Accountant

1693 Points Joined April 2014

Agree with Poornima Ji TDS Provisions are exhaustive provisions. They just provide the nature of incomes on which TDS is required to be deducted. Apart from those incomes, TDS is NOT required to be deducted on any payments.