Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram
Statutory Provisions

Home Acts & Rules Bill Bills FINANCE BILL, 2016 Chapters List Chapter III DIRECT TAXES This

Clause 74 - Amendment of section 194DA. - FINANCE BILL, 2016

FINANCE BILL, 2016
Chapter III
DIRECT TAXES
  • Contents

Amendment of section 194DA.

74. In section 194DA of the Income-tax Act, for the words “two per cent.”, the words “one per cent.” shall be substituted with effect from the 1st day of June, 2016.

 



 

Notes on Clauses:

Clause 74 of the Bill seeks to amend section 194DA of the Income-tax Act relating to payment in respect of life insurance policy. 

Under the existing provisions contained in the aforesaid section, any person responsible for paying to a resident any sum under a life insurance policy, including the sum allocated by way of bonus on such policy, which is not exempt under clause (10D) of section 10, shall, at the time of payment thereof, deduct income-tax at the rate of two per cent., in case the aggregate amount of such payments exceeds one hundred thousand rupees during the financial year.

It is proposed to reduce the said rate of tax deduction from two per cent. to one per cent.

This amendment will take effect from 1st June, 2016.

 
 
 
 

Quick Updates:Latest Updates