CHAPTER III
DIRECT TAXES
Income-tax
Amendment of section 194D.
38. In section 194D of the Income-tax Act, in the second proviso, for the words "five thousand rupees", the words "twenty thousand rupees" shall be substituted with effect from the 1st day of July, 2010.
Notes on Clauses:
Clause 38 of the Bill seeks to amend section 194D of the Income tax Act relating to insurance commission.
Under the existing provisions contained in the aforesaid section, no deduction of income-tax shall be made in a case where the amount of such income, or the aggregate of the amount of the income, relating to remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business, credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee does not exceed five thousand rupees.
It is proposed to enhance the said limit from five thousand rupees to twenty thousand rupees.
This amendment will take effect from 1st July, 2010.
