Question

    What is the rate of Tax Deduction at Source from insurance commission?

    (Commission amount is ₹20,000 and assessee is an individual)

    A 15% Correct Answer Incorrect Answer
    B 5% Correct Answer Incorrect Answer
    C 1% Correct Answer Incorrect Answer
    D 10% Correct Answer Incorrect Answer

    Solution

    Section 194D is applicable for all such payments made to a resident whether they are an individual, company or any other category of persons. The rate of TDS in case of Domestic companies is 10% whereas for persons other than company is 5%, however no TDS is required to be deducted if commission paid does not exceed Rs.15,000.

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