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TMI BlogSection 194D of the Income-tax Act, 1961--Deduction of tax at source from insurance commission, etc., during the financial year 1991-92X X X X Extracts X X X X X X X X Extracts X X X X ..... no change in the rates for deducting income-tax during the financial year 1991-92. These rates are as under:-- (i) in the case of a non-corporate resident person 10 per cent (ii) in the case of a domestic company 21.5 per cent 3. Further, the amount of income-tax deducted at the aforesaid rates is to be increased by a surcharge at the rate of 12% in the case of a non-corporate resident person and at the rate of 15% in the case of a domestic company. 4. It may be noted that the provisions of section 194D apply in relation to income by way of insurance commission paid to a resident only. However, under the provisions of section 195, income-tax is required to be deducted from payments (including payments b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he provisions of section 200, any person deducting any sum in accordance with the provisions of section 194D shall pay within the prescribed time (as laid down in rule 30 of the Income-tax Rules, 1962), the sum so deducted to the credit of the Central Government. In the case of deduction by or on behalf of the Government, the sum has to be paid on the day of the deduction itself. In other cases, normally the same has to be paid within one week from the last day of the month in which the deduction is made. If a person fails to deduct tax at source, or, after deducting, fails to pay the tax to the credit of the Central Government, he shall be liable to action in accordance with the provisions of section 201. Sub-section (1A) of section 201 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... way of penalty under section 272A of the Act, a sum which shall not be less than Rs.100 but which may extend to Rs.200 for every day during which the failure continues. (c) According to the provisions of section 203A of the Income-tax Act, it is obligatory for all persons responsible for deducting tax at source to obtain and quote the Tax Deduction Account Number (TAN) in the challans, TDS certificates, returns, etc. Detailed instructions in this regard are available in the Board's Circular No.497 [F.No. 275/118/87-IT(B)] dated 9-10-1987 (See [1988] 169 ITR (St.) 54). If a person fails to comply with the provisions of section 203A, he shall be liable to pay by way of penalty, under section 272BB, a sum up to Rs.5,000. (d) According to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he contents of this Circular may please be brought to the notice of all concerned. (Sd.) Rajesh Chandra, Under Secretary to the Government of India. Annexure I Form No. 16A [See rule 31(1)(b)] Certificate of deduction of tax at source under section 203 of the Income-tax Act, 1961 For interest on securities, dividends, interest on time deposits referred to in clauses (vii) and (viia) of sub-section (3) of section 194A; insurance commission; payments in respect of depos its under National Savings Scheme; payments on account of repur chase of units by the Mutual Fund or Unit Trust of India; commis sion, remuneration or prize on sale of lottery tickets; commis sion or brokerage; income from units referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of income-tax deducted (Rs.) Rate at which deducted Date Challan No. of deposit of tax into Central Government Account Name of the bank and branch where tax deposited Certified that a sum of Rs. (in words) ...................... has been deducted at source and paid to the credit of the Central Government as per details given above. Place................. ..................................................................... Date.................. Signature of person responsible for deduction of tax Full Name............................................ Designation......................................... ..... X X X X Extracts X X X X X X X X Extracts X X X X
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