Microlesson · 5-min read

Section 194D — Insurance Commission

# Section 194D — TDS on Insurance Commission

## Who deducts?

Payer: Any person paying insurance commission/remuneration to procure/continue insurance business.
Payee: Resident person (agent).

## Threshold

Commission > ₹20,000 p.a.

## Rate

Worked example

### Example 1

Example: LIC pays ₹35,000 commission to an individual agent. TDS = 2% of ₹35,000 = ₹700.

### Example 2

Example: ₹18,000 commission paid to an individual — no TDS (below threshold).

Confusing 194D (insurance commission) with 194DA (life insurance policy maturity proceeds).
Applying flat 10% on individual agents — the rate is 2% for Ind/HUF.

Reference: 194D

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