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is TDS applicable on health insurance premium paid by employer

QuestionsCategory: Group Health Insuranceis TDS applicable on health insurance premium paid by employer
default avatarPlan Cover Staff asked 4 months ago

2 Answers

Best Answer

default avatarSrinivasan Mahadevan Staff answered 2 months ago
TDS is not applicable for insurance premiums. An employer cannot claim TDS benefit on insurance premiums as insurance company will not accept deduction of TDS amount on insurance premiums. 
TDS Deduction of tax is applicable only on remuneration or reward, by way of commission to be received by the agent or a broker who has sold the insurance policy.  Such a commission, remuneration, or a reward attracts tax deduction at source under section 194D on Income Tax Act, 1961.

default avatarSrinivasan Mahadevan Staff answered 2 months ago
TDS is not applicable for insurance premiums. An employer cannot claim TDS benefit on insurance premiums as insurance company will not accept deduction of TDS amount on insurance premiums. 
TDS Deduction of tax is applicable only on remuneration or reward, by way of commission to be received by the agent or a broker who has sold the insurance policy.  Such a commission, remuneration, or a reward attracts tax deduction at source under section 194D on Income Tax Act, 1961.

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