Clause 55 - Insertion of new section 194DA- Payment in respect of life insurance policy - Finance (No. 2) Bill, 2014

Insertion of new section 194DA 55. After section 194D of the Income-tax Act, the following section shall be inserted with effect from the 1st day of October, 2014, namely: Payment in respect of life insurance policy. 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. .