TDS on remuneration or rewards paid for soliciting or procuring insurance business. - Income Tax - 634/CBDT

INSTRUCTION NO. 634/CBDT Dated : November 9, 1973 Section(s) Referred: 194D Statute: Income - Tax Act, 1961 The Finance Act,1973 has introduced a new section., 194-D in the I.T.Act. This section provides for deduction of I.T. at source from income by way of remuneration or reward in the form of commission or otherwise for soliciting or procuring insurance business. The Board have decided in consultation with the C AG of India that the following minor and sub-heads of Accounts should be opened: III-CORPORATION TAX: Minor-head: Income-tax on companies(already existing) Sub-head: Deductions from payments in respect of insurance commission etc., u/s.194-D of the I.T.Act. IV-TAXES ON INCOME OTHER THAN CORPORATION TAX: Minor-head: Income-tax(already existing) Sub-head: Deductions from payments in respect of insurance commission etc u/s.194-D of the I.T.Act. 2. Necessary correction slips to Appendix 2 to Account Code Vol.1 are being issued by the C AG of India separately, suitable change may please be made in forms ITNS 36 (Challan form), ITNS71 form of Budget Estimates and the form prescribed for submitting monthly Additional Information regarding collection of Income-tax and Corporation Tax.