Please Help: TDS
Posted Date : 22-Sep-2011 , 05:22:21 pm | Posted By Avneet Singh
Hi Can anybody tell whether a company should deduct TDS to the payment made to the Insurance Company for covering the Life Insurance of the their Employees??
Category : Income Tax | Answers : 2 | Comments : 1 | Hits : 363
Answers
Answer By: Ashish Karundia
Dear Avneet,
The Company is required to deduct TDS u/s 194J of the Income TAx Act, 1961 on payments made to the insurance company.
The Company is required to deduct TDS u/s 194J of the Income TAx Act, 1961 on payments made to the insurance company.
Answer By: Ashish Karundia
Dear Avaneet,
At the outset my apologies for inadvertently giving a wrong reply. There's no need to deduct TDS on payments made to insurance companies as the payments made to them do not attract any TDS provisions ( I answered 194J because I was under an impression that the same is notified as a professional service - However, now i understood that a thing should be checked twice before answering).
Further, I would like to mention that the circular (4/2002) mentioned by my dear friend Vipin Garg is of no relevance here as the said circular provides a clarification that no TDS is required to be deducted on income of LIC or other insurer referred to in Section 10(23AAB). If one see Section 10(23AAB), it provides exemption from income under a pension scheme.
Thus, no TDS is required to be deducted in the instant case because of the reason that none of the TDS provisions are attracted in such case.
Nonetheless thanks to Vipin Garg for citing the same.
At the outset my apologies for inadvertently giving a wrong reply. There's no need to deduct TDS on payments made to insurance companies as the payments made to them do not attract any TDS provisions ( I answered 194J because I was under an impression that the same is notified as a professional service - However, now i understood that a thing should be checked twice before answering).
Further, I would like to mention that the circular (4/2002) mentioned by my dear friend Vipin Garg is of no relevance here as the said circular provides a clarification that no TDS is required to be deducted on income of LIC or other insurer referred to in Section 10(23AAB). If one see Section 10(23AAB), it provides exemption from income under a pension scheme.
Thus, no TDS is required to be deducted in the instant case because of the reason that none of the TDS provisions are attracted in such case.
Nonetheless thanks to Vipin Garg for citing the same.
Comments
CA VIPIN GARG
24-Sep-2011 , 08:55:45 amDear Avneet Ji, in the above case i am totally disagree with what Ashish Ji said because as per my knowledge the TDS is not required to be deducted when you make the payment to Insurance company. You can also refer the board's Circular : No. 4/2002, dated 16-7-2002. Hope you got the required answer, have a nice day Avneet Ji and Ashish Ji........