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TMI BlogSection 194D of the Income-tax Act, 1961--Deduction of tax at source from insurance commission during the financial year 1992-93X X X X Extracts X X X X X X X X Extracts X X X X ..... change in the rates for deducting income-tax from insurance commission paid during the financial year 1992-93. These rates are as under: (i) in the case of a non-corporate resident person - 10% (ii) in the case of domestic company - 21.5% 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 by way of insurance commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te or deduct no tax, as the case may be. 7. The responsibilities, obligations, etc. under the Income-tax Act, of the person deducting tax at source are as follows: (a) According to the 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 pay the tax to the credit of the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able to pay way of penalty, under section 272A, a sum which shall not be less than Rs.100 but which may extend to Rs. 200 for each 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 9th October, 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) Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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