WHAT IS THE REASON BEHIND THAT TDS IS NOT APPLICABLE ON LIFE INSURANSE PREMIUM?
milind shirodkar (service) (81 Points)
12 December 2008WHAT IS THE REASON BEHIND THAT TDS IS NOT APPLICABLE ON LIFE INSURANSE PREMIUM?
Prabeer
(B. COM (H) CA & CS Final)
(5484 Points)
Replied 12 December 2008
It's an Exemption provided by the Income Tax Department.
CA Hemant T Dewani
(Chartered Accountant)
(3356 Points)
Replied 12 December 2008
LIC PAID TO INSURANCE CO.IS DEBITED TO CAPITAL A/C & IT IS NOT DEBITED TO P&L A/C IN MY OPNION THIS EXP.ARE INVESTMENT & PERSONAL NATURE SO TDS IS NOT DEDUCTED
rani
(article assistent)
(53 Points)
Replied 12 December 2008
Insurence company is a service sector company just like BSNL or AIrtel or electracity company. And individuals exempted from deductig TDS. so no question of TDS on insurence premium.
RAJU
(LEARNER)
(1089 Points)
Replied 12 December 2008
I want to know why TDS is not being deducted on bank charges/bank processing fee. I had hosted this query before but could not get the feedback.
Let me have your views.
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