9911796707
TMI BlogDeduction of income-tax at source--Section 194D of the Income-tax Act,: 1961--Deduction from Insurance Commission, etc.--Financial Year 1981-82X X X X Extracts X X X X X X X X Extracts X X X X ..... (St.) 36) wherein the rates at which the deduction of income-tax was to be made during the financial year 1980-81 from payments of income by way of insurance commission under section 194D of the Income-tax Act, 1961, were intimated. The Finance Bill, 1981, introduced in Parliament on 28-2-81 proposes, in Part II of the First Schedule, the following rates for deduction of tax at source under section 194D of the Act during the financial year 1981-82:- Income-tax Surcharge (1) In the case of a person other than a company 10% Nil (2) In the case of a domestic company 21.5% 0.5% 2. Though provisions of section 194D of the Income-tax Act, 1961, apply only in relation to income by way of insurance commission paid to a resident, under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating to continuance, renewal or reviving of policies of insurance). (ii) Deduction will be made at the time of the credit of the income to the account of, or the payment thereof (by whatever mode) to the payee, whichever is earlier. (iii) The tax deducted should be paid to the credit of the Central Government by remitting it into the Government Treasury or the office of the Reserve Bank of India or the State Bank of India or any other authorised public sector bank within one week from the last day of the month in which the deduction is made. In cases where the income by way of insurance commission is credited to the account of the payee as on the date up to which the accounts of the business of the payer are made, the tax deducted theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him earlier is not permissible and income-tax must be deducted from the full amount of commission credited to his account. (vii) It will be open to the recipient of the commission, other than a company, to make an application in Form No. 13D to the Income-tax 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 rates, or deduct no tax, as may be appropriate to his case. Such a 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 to the payee in Form No. 19D showing therein the amount of in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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