Hareshkumar Sharma (1 Points)
21 February 2024The policy was purchased under Kotak Assured Income plan for NRI. Kotak paid full amount of survival benefit ( first time) last year without TDS. This year they deducted 30%TDS. Is this justified.
Jacky
(Accountant & CA Final Student)
(320 Points)
Replied 21 February 2024
Yasaswi Gomes new
(Finance )
(4492 Points)
Replied 22 February 2024
The **Kotak Assured Income plan** for NRIs is designed to provide guaranteed income. Let's delve into the situation:
1. **Last Year**:
- **Kotak** paid the **full amount** of the survival benefit without any **TDS** deduction. This means you received the entire benefit amount.
- This aligns with the policy's intent to provide assured income.
2. **This Year**:
- **Kotak** deducted **30% TDS** from the survival benefit.
- **TDS (Tax Deducted at Source)** is a legal requirement where a portion of the income is withheld by the payer and remitted to the government as tax.
- The **TDS rate** can vary based on the type of income and other factors.
**Justification**:
- The **TDS deduction** this year is likely due to regulatory requirements or changes in tax laws.
- It's essential to consider the **Double Taxation Avoidance Agreement (DTAA)** between India and the country where the NRI resides. DTAA can impact the TDS rate³.
- To understand the specific reasons behind the change, I recommend reaching out to **Kotak Life Insurance** directly. They can provide detailed information about the TDS deduction and its justification.
Remember that tax regulations can evolve, and it's essential to stay informed about any changes. If you have further concerns, consider consulting a **tax advisor** for personalized guidance. 📊💼
Source: Conversation with Bing, 22/02/2024
(1) Max Yield Non Resident Ordinary Fixed Deposit - Kotak Mahindra Bank. https://www.kotak.com/en/personal-banking/nri/accounts-deposits/structured-products/max-yield-non-resident-ordinary-fixed-deposit.html.
(2) TDS from Survival banefit paid yearly on Kotak life Assurd Income plan .... https://www.caclubindia.com/forum/tds-from-survival-banefit-paid-yearly-on-kotak-life-assurd-income-plan-30--605267.asp.
(3) Invest in NRE Fixed Deposits to earn from your Savings by Kotak .... https://www.kotak.com/en/personal-banking/nri/accounts-deposits/deposits/nre-fixed-deposit.html.
(4) Kotak Assured Income Accelerator - Kotak Life Insurance. https://www.kotaklife.com/savings-plan/kotak-assured-income-accelerator.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
