9911796707
TMI BlogDeduction of income-tax at source--Section 194D of the Income-tax Act, 1961--Deduction from insurance commission, etc.--Financial year 1979-80X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, provides for the deduction of tax at source, at such rates as may be specified in this behalf by the Finance Act of the relevant year from payments of income by way of insurance commission, to a resident, whether an individual, a company or any other category of person. The rates for deduction of tax at source for the financial year 1979-80, as specified in Part II of the First Schedule to the Finance Act, 1979, are as below: Income-tax Surcharge I. In the case of a person other than a company 10 per cent Nil ; II. In the case of a domestic company 21.5 per cent 1.5 per cent. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of the main provisions in the law in so far as they relate to deduction of income-tax from insurance commission is given hereunder: (i) For the purpose of deduction of tax at source "insurance commission" will mean any income by way of remuneration or reward whether by way of commission or otherwise for soliciting or procuring insurance business (including business relating to continuance, renewal or reviving of policies of insurance). (ii) Deduction will be made at the time of the credit of the income to the account of, or the payment thereof (by whatever mode) to the payee, whichever is earlier. (iii) The tax deducted should be paid to the credit of the Central Government by remitting it into the Government Treasury or the offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r any debits made in his account in respect of excess commission credited or paid to him earlier is not permissible and income-tax must be deducted from the full amount of commission credited to this account. (vii) It will be open to the recipient of the commission to make an application in Form No. 13D to the Income-tax Officer concerned and obtain from him a certificate authorising the person responsible for paying the income by way of insurance commission to deduct tax at such rates or deduct no tax, as may be appropriate to his case. Such certificate will be valid for the period specified therein unless it is cancelled by the Income-tax Officer earlier. (viii) The person responsible for making the payments should issue a certifica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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