​​​​​​​Section 194DA - Payment in respect of life insurance policy (Rationalisation and Simplification of taxation of Capital Gains)

Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

As per provisions of section 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 5% on the amount of income comprised therein.

2. It is proposed that TDS under section 194DA of the Act be reduced from 5% to 2%.

3. The amendment will take effect from 1st day of October 2024.

[Clause 54]

Full Text:

Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

Dated: 24-7-2024