TDS Section 194D — Insurance commission
FY 2025-26 · Rate 2% (reduced from 5% by Finance Act 2025)
What does this section cover?
TDS on commission paid to insurance agents for soliciting/procuring insurance business.
Why this section: Insurance companies deduct TDS on commission paid to agents above ₹20,000 per FY.
Key facts
- Threshold
- ₹20,000 per FY (raised from ₹15,000 by Finance Act 2025)
- Applicable for
- FY 2025-26
- Who deducts
- Insurance company (LIC, HDFC Life, etc.)
- Paid to
- Insurance agent / broker
- Statutory source
- Section 194D, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 194D is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.
Related TDS sections
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Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.