Amendment of section 194D.
73. In section 194D of the Income-tax Act, in the second proviso, for the words “twenty thousand rupees”, the words “fifteen thousand rupees” shall be substituted with effect from the 1st day of June, 2016.
Notes on Clauses:
Clause 73 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, deduction of income tax at the rates in force 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 during the financial year to the account of, or to, the payee. However, the second proviso to the said section provides that no deduction of income-tax under that section shall be made if such amount does not exceed twenty thousand rupees.
It is proposed to reduce the said threshold limit from twenty thousand rupees to fifteen thousand rupees.
This amendment will take effect from 1st June, 2016.
