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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 1993-94--Instructions regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... 2. According to the provisions of section 194D, any person paying to a resident 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 the continuance, renewal or revival of insurance policies) is required to deduct at the time of actual payment or at the time of credit of such income, whichever is earlier, income-tax at the rates in force. However, no such deduction is required to be made in a case where the amount of such income or the aggregate amount of such income paid or credited during the financial year does not exceed Rs. 5,000. 3. There is no change in the rates for deducting income-tax from insurance commission paid duri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct no tax, as the case may be. 6. 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 Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 203, he shall be liable to pay by way of penalty, under section 272A(2), s 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 contained in the Board's Circular No. 497 (F. No. 275/118/87-IT(B)), dated 9th October, 1987*. 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant provisions of the Income-tax Act, 1961, and the Income-tax Rules, 1962. In case any assistance is required, the Assessing Officer concerned or the local Public Relations Officer of the Income-tax Department may be contacted. 9. The contents of this Circular may please be brought to the notice of all concerned. 10. Copies of this Circular will be available with the Directorate of Income-tax (RSP PR), 6th Floor, Mayur Bhawan, Connaught Circus, New Delhi-110 001. (Sd.) Rajesh Chandra, Under Secretary, Central Board of Direct Taxes. 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 - Circular - Trade Notice - Public Notice - Instructions - Office o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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