9911796707
TMI BlogDeduction of income-tax at source-Section 194D of the Income-tax Act, 1961-Deduction from insurance commission, etc.-Rates of tax applicable during the financial year 1984-85X X X X Extracts X X X X X X X X Extracts X X X X ..... , etc.-Rates of tax applicable during the financial year 1984-85. I am directed to invite a reference to this Department's Circular No. 361 (F. No. 275/25/83-IT-B), dated the 10th June, 1983 (printed at [1983] 142 ITR (St.) 89), wherein the rates at which the deduction of income-tax was to be made during the financial year 1983-84, from payments of income by way of insurance commission under section 194D of the Income-tax Act, 1961, were intimated. The Finance Act, 1984, prescribes in Part II of the First Schedule, the following rates for deduction of tax at source under section 194D of the Act during the financial year 1984-85: Income-tax Surcharge I. In the case of a person (other than a company), who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in so far as they relate to deduction of income-tax from insurance commission is given hereunder:- (i) For purposes of deduction of tax at source "insurance commission" will mean an 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 office of the Reserve Bank of India or the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucted at source should be rounded off to the nearest rupee ignoring amount less than 50 paise and increasing the amount of 50 paise or more to one rupee, as required under section 288B of the Act. (vi) At the time of deducting tax from the insurance commission credited to an agent's account, adjustment for 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 his account. (vii) It will be open to the recipient of the commission, other than a company, 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 payi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
