Deduction of income-tax at source-Section 194D of the Income-tax Act, 1961-Deduction from insurance commission, etc.-Rate of tax applicable during the financial year 1986-87

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... l year 1986-87 Circular No.462 Dated 10/7/1986 From B. Nagarajan, Secretary, Central Board of Direct Taxes. To All Insurance Companies. Sir, Subject: Deduction of income-tax at source-Section 194D of the Income-tax Act, 1961-Deduction from insurance commission, etc.-Rate of tax applicable during the financial year 1986-87. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e of a domestic company 21.5 per cent; Though the provisions of section 194D of the Income-tax Act, 1961, apply only in relation to income by way of insurance commission paid to a resident, under the provisions of section 195 of the Income-tax Act, income-tax is required to be deducted from payments (including payment of income by way of insurance commission) made to a non-corporate no .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... omestic company, tax on insurance commission is to be deducted at the rate of 65%. There is no change in the substance of the main provisions in law in so far as they relate to deduction of income-tax from insurance commission, as given in paragraph 3 of the aforesaid circular. 2. The contents of this circular may please be brought to the notice of all concerned. In case of doubt, the Income-tax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X