​​​​​​​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 - Finance Bill

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