Insurance Commission [Section 194D] under Deduction of Tax at Source :

(1) Section 194D casts responsibility on any person responsible for paying to a resident any income by way of remuneration or reward.

(2) Such income may be by way of insurance commission or other remuneration in consideration for soliciting or procuring insurance business (including the business relating to the continuance, renewal or revival of policies of insurance).

(3) Such person is required to deduct income-tax at the rate of 10%, both in the case of resident non-corporate assessees and domestic companies.

(4) The deduction is to be made at the time of the credit of the income to the account of the payee or at the time of making the payment (by whatever mode) to the payee, whichever is earlier.

(5) The tax under this section has to be deducted at source only if the amount of such income or the aggregate of the amounts of such income credited or paid during the financial year to the account of the payee exceeds Rs 20,000.