Sir,
While filing ITR - 1, i have verified AIS and find out one Insurance amount Received Rs.70k and TDS deducted 5% u/s 194DA.
I have a doubt, is it 70k taxable income or exempted income.
Kindly suggest.
Regards,
Vinod
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TDS u/s 194da
Replies (2)
It is taxable under head IFOS.
Insurance receipt with 194DA TDS:
• 194DA TDS (2% from 1 October 2024; 5% earlier on the income component) is deducted when a life insurance payout isn't exempt under Sec 10(10D) (e.g. premium exceeded 10% of the sum assured, or high-premium policies after April 2023).
• Taxable portion = amount received minus total premiums paid (the insurer deducts TDS on this income component). Report it under "Income from Other Sources" in ITR-1, and claim the TDS.
• If you believe the payout is exempt (10(10D) satisfied), report it in exempt income and still claim the TDS (excess refunded). The CPC may flag a mismatch if the 26AS shows 194DA. Keep the policy details.
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