TDS on Payment in respect of Life Insurance Policies – Section 194DA
Insurance company paying amount to a resident under a life insurance policy including bonus is liable to deduct TDS @ 1% (2% before 1st June 2016). TDS is to be deducted only when such sum is not exempt from income tax under section 10(10D).
Also tds is to be deducted only when the amount paid to a person during the financial year is rs. 1 lakh or more.