# Sections 194D & 194DA – Insurance Commission and LIP Sum
## A. Section 194D – Insurance Commission
| Parameter | Details |
|---|---|
| Payer | Any person paying income by way of remuneration/reward for soliciting or procuring insurance business |
| Payee | Any Resident |
| Threshold | Aggregate amount in F.Y. > ₹20,000 |
| Rate | 2% if payee is non-corporate resident; 10% if payee is a domestic company |
| Time | Earlier of credit or payment |
## B. Section 194DA – Maturity of Life Insurance Policy
### Applicability
- Any sum paid under a Life Insurance Policy NOT exempt under Section 10(10D) (i.e., does not meet the premium-to-sum-assured / ULIP / Keyman conditions).
### Parameters
| Parameter | Details |
|---|---|
| Payer | Any person responsible for paying sum under LIP (including bonus) |
| Payee | Any Resident |
| Threshold | Aggregate amount in F.Y. ≥ ₹1,00,000 |
| Rate | 2% on the income comprised therein (i.e., maturity proceeds MINUS premium paid) |
| Time | At the time of payment |
### Key Concept – 'Income Component'
- TDS is NOT on the gross maturity amount.
- It is computed only on the income component = Sum paid − Aggregate of premiums paid.
## Comparative Snapshot
```
| 194D | 194DA
Nature | Insurance commission | LIP maturity (non-10(10D))
Limit | > ₹20,000 | ≥ ₹1,00,000
Rate | 2% (non-corp); 10% Co.| 2% on income comprised
Time | Earlier of cr./pmt. | At payment
```