What is Section 194DA?

1. Under section 194DA, the liability to deduct TDS is upon the insurance company.
2. TDS shall be deductible on any sum (maturity proceeds/ surrender value/ allocated bonus) as is payable against a life insurance policy.

How can I claim TDS refund on insurance commission?

Non-deduction or a low rate of tax deduction

An individual who receives a commission can make an application in Form 13 to the Assessing Officer for a certificate authorising the payer not to deduct any tax or to deduct tax at a lower rate.

Is accidental claim taxable?

Hence any compensation received from Govt on death or disablement due to natural calamity, collapse of building or flyover, railway accident or other accident or incidents is not taxable in hands of recipient.

How is income tax calculated under section 194DA?

The rate of tax u/s 194DA is 5% (3.75% w.e.f. 14.05. 2020 to 31.03. 2021) on “only Income Part” of the payment made under LIP. [Applicable from September 1, 2019] (That is after deducting the amount of insurance premiums paid by the insured person from the total sum received from Insurance Company).

How can I check my LIC maturity amount?

Step 1:The insured needs to visit the official website of LIC. Step 2:On the home page, the user can select the option of "New User." Step 3:In the next step, he can fill up his personal details such as name, date of birth, policy number, mobile number, email address, etc.

What is Section 1010d?

This section provides income tax deductions on any sum obtained through an insurance plan's maturity, death benefit, and bonus. Premium paid during any year for a policy cannot be more than 20% of the sum assured for life insurance bought between 1st April 2003 and 31st March 2012.

What is Section 194LBA?

1) Who is responsible to deduct tax under section 194LBA of Income Tax Act, 1961? Any person who makes payment of income [as per section 115UA] which is payable by a business trust to its unit holder is required to deduct tax at source. Such unit holder can be a resident, non-resident (but not a company).

How does commission show income in ITR?

Which ITR should I file? Ans- If the commision income is more than the salary income then ITR-4 is required to be filed otherwise ITR-1 can be filed and commission income can be shown under other sources.

Where is insurance maturity amount in ITR?

Life Insurance Tax Rules

As per Section 10(10D) of the Income Tax Act, the sum assured received on maturity or surrender of a policy or upon the policyholder's death is completely tax-free. Bonuses received with such an amount are also exempt under Section 10(10D).

Is maturity amount of ULIP taxable?

Premium paid on ULIPs is eligible for a deduction under Section 80C up to a maximum of Rs 1.5 lakhs during a year. Further, the amount you receive on maturity is tax exempt under Section 10(10D).

Is TDS applicable on ULIP policy?

TDS will also be deducted on bonus payments. If the amount received is less than Rs 1,00,000, no TDS shall be deducted but the amount received shall be fully taxable for you. You can claim credit for the TDS deducted in your Income Tax Return.

Is survival benefit received from LIC taxable?

They both offer tax benefits under section 10(10D) of the Income Tax Act, 1961. As per this section, the amount you receive from your life insurance policy is exempt from tax. This includes both maturity benefits and survival benefits.

How can I know my LIC premium amount?

You can check details of your LIC policy including details of the LIC premium payment online, accrued bonuses, group schemes, etc. by simply logging on to the official website of LIC India with your LIC login credentials.

What is LIC maturity benefit?

Maturity benefit is essentially the Sum Assured payable along with accumulated guaranteed additions, terminal bonus, and vested simple reversionary bonus (if applicable). If the policyholder of a certain policy outlives his/her policy term, he/she will be entitled to certain benefits from the insurer.

Can insurance commission be shown under 44AD?

Insurance agents earn income by way of commission and, hence, they cannot adopt the presumptive taxation scheme of section 44AD. A person who is engaged in any profession as prescribed under section 44AA(1) cannot adopt the presumptive taxation scheme of section 44AD.

Is LIC maturity amount taxable for NRI?

However, the Maturity amount received under most of the LIC Saving Plans is 100% Tax Exempted, only maturity from the single premium plans is taxable. This rule applies to everyone whether it is NRIs or domestic residents.

Is TDS applicable on insurance maturity?

The rate of tax deducted at source (TDS) on life insurance policies where maturity proceeds are taxable has been halved from 2% to 1%. Under section 194DA, TDS is applicable on all taxable payments made to them if the total amount exceeds Rs 1 lakh.

Is there any deduction for accidental insurance?

According to a deduction in Section 80C, personal accident policies are not eligible for tax deduction. ... These policies include accidental accident insurance, trauma insurance or critical care insurances whose premiums are paid to cover physical injuries.

Is accidental injury insurance tax deductible?

Income protection, sickness and accident insurance premiums

You can claim the cost of any premiums you paid for insurance against the loss of your income. ... Life insurance, trauma insurance and critical care insurance are some types of policies for which premiums are not deductible.

Who is liable to pay compensation in case of death?

-- (1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay in the case of death or grievous hurt due to any accident arising out of the use of motor vehicle, ...