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TMI BlogDeduction of income-tax at source-Section 194D of the Income-tax Act, 1961-Deduction from Insurance Commission etc.-Financial year 1977-78X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 31-3-1977 on the above subject. 2. Section 194D of the Income-tax Act, 1961, provides for the deduction of tax at source, at such rates as may be specified in this behalf by the Finance Act of the relevant year, from payments of income by way of insurance commission, to a resident, whether an individual, a company or any other category of person. The rates for deduction of tax at source for the financial year 1977-78 proposed to be specified in Part II of the First Schedule to the Finance (No.2) Bill, 1977, as introduced in Parliament, are as below: Income-tax Surcharge I. In the case of a person other than a company 10 per cent Nil ; II. In the case of a domestic company 22 per cent 1 per cent. 3. Though provisions of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by Parliament, suitable instructions will be sent to you. 5. The substance of the main provisions of the law in so far as they relate to deduction of income-tax from insurance commission is given hereunder: (i) For the purpose of deduction of tax at source "insurance commission" will mean 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 continuance, renewal or reviving of policies of insurance). (ii) Income-tax will be deductible from the amount credited or paid after 31st May, 1977, even if the relevant amounts accrued before that date. (iii) Deduction will be made at the time of the credit of the income to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Officer concerned and obtain from him a certificate authorising the person responsible for paying the income by way of insurance commission to deduct tax at such lower rates or deduct no tax, as may be appropriate to his case. Such certificate will be valid for the period specified therein unless it is cancelled by the Income-tax Officer earlier. (viii) The person responsible for making the payments should issue a certificate in Form No.19D showing therein the amount of income by way of insurance commission credited or paid, the amount of tax deducted at source and the date of payment to the Government Account. (ix) The person making deduction of tax in accordance with section 194D from income by way of insurance commission would sen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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