TDS Section 194DA — Payment under life insurance policy
FY 2025-26 · Rate 2% on income portion (reduced from 5% by Finance Act 2025)
What does this section cover?
TDS on maturity proceeds of life insurance policy (if not exempt under Section 10(10D)).
Why this section: If a life insurance policy doesn't qualify for Section 10(10D) exemption (e.g. premium > 10% of sum assured), TDS at 2% on the income component.
Key facts
- Threshold
- ₹1,00,000 aggregate per FY per policyholder
- Applicable for
- FY 2025-26
- Who deducts
- Insurance company
- Paid to
- Policyholder / nominee
- Statutory source
- Section 194DA, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 194DA 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
Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.
Need a different section?
Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.
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.