Kotak Life
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

When Should TDS be Deducted and Who is Liable to Deduct it?

When Should TDS be Deducted and Who is Liable to Deduct it?
  • 8th Feb 2022 |
  • 2,271

TDS was established with the intention of direct taxation straight from the original income. As per this theory, the deductor who is compelled to make a specific type of payment to the deductee must recoup tax at the origin and transfer it to the Central Government’s fund. The deductee whose taxable income has been deducted at origin is eligible for a rebate for the sum so deducted depending on the details filled in the deductor’s Form 26AS or the TDS certificate.

When Is TDS Deducted and Who Is Responsible for It

Individuals who make certain payments, as defined by the Income Tax Act, are required to pay TDS just at the time of transaction. No TDS should be collected if the person making the payment is a person or a HUF whose finances are not required to be audited. Even if the person or HUF is not subject to a financial audit, people and HUFs who pay rent in excess of ₹50,000 per month must pay TDS at the rate of 5%.

People and HUFs who must deduct TDS at a rate of 5% are exempt from applying for TAN (Tax deduction account number). Your corporation deducts TDS at the applicable income tax slab rates. TDS is collected by banks at a rate of 10%. Furthermore, they can collect 20% if they don’t have your PAN credentials.

For most payments, TDS rates are specified in the income tax legislation, and TDS is deducted by the payer based on these rates. You will not have to pay any tax if you provide investment proof (for claiming deductions) to your company, and your total tax payable is less than the tax limitation. As a result, you should not have any TDS deducted from your wages. Similarly, if your total income is substantially below the tax threshold, you can file Form 15G and Form 15H with your bank to avoid TDS being taken from your interest income.

TDS On Insurance Premium

Most insurance plans, whether life insurance or term insurance, do not charge any kind of TDS on premium provided the following conditions are met:

  • TDS on insurance is exempted if the policies were granted on or before March 31, 2012, with an amount assured of at least five times the annual premium paid.
  • The policies, which were issued on or after April 1, 2012, have an amount assured of at least ten times the yearly premium paid.

TDS On Insurance is Applicable Under The Following Conditions

The exemptions under Section 10 (10D) do not apply if the maturity amount from a life insurance payout exceeds ₹1,00,000 in a year. In this case, the maturity amount will be taxable as usual. TDS is deducted from the maturity amount of a life insurance policy in line with Section 194 DA.

TDS Refund Claim

Whenever the tax paid through TDS exceeds the actual tax payable determined for the financial year, a TDS Refund claim is filed. It’s computed by adding together all of your earnings from various sources. As taxpayers, we are all classified into different tax brackets and are required to pay tax in accordance with that.

To conclude, mastering the fundamentals of TDS will make it simpler to manage your money and make smarter investments to increase your wealth over the long term.

Kotak e-Term Plan

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Is term Insurance Needed for People With No Dependents?

Is Group Term Life Insurance Provided By Employer Sufficient?

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Why Term Insurance Is Important in times of COVID-19?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Term Insurance Age Limit – Term Plan for All Age Groups

Reasons You Need Term Insurance Plan as a Self-Employed Person

4 Methods to Calculate How Much Term Insurance You Need

Why Should You Add a Rider to a Term Insurance Plan?

Importance of Term Insurance at Every Stage of Your Life

What Are the Best Term Insurance Plans for Planning Retirement?

Term Insurance Basics You Should Know

How To Choose the Right Sum Assured Under a Term Plan?

Busting Myths and Facts About Term Insurance Policies

Best Investment Plans for Children - Secure Your Child's Future

Should You Have Multiple Term Life Insurance Policies?

Why 1 Cr Term Plan Is Necessary For Family?

Protection for your family

All About Term Insurance Inbuilt Coverage

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

How To Change The Nominee in Term Insurance?

How Much Cover Should I Take In A Term Plan?

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Calculating Term Insurance Premium

4 Things To Expect From Your Term Insurance Plan in India

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Tips to Choose the Right Term Period for Term Insurance Plan

Insuring Against Accidents with an Accidental Death Insurance Rider

Term Plan with Spouse Cover

Endowment Plans vs Term Plans: Understanding the difference

Why Buy Term Insurance Even at Rising Rates?

Steps on How to Buy Term Insurance Online

Do You Need Term Insurance Cover After Retirement?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Term Insurance: Smokers vs Non-Smokers

Online vs Offline Term Insurance: Which Is The Better Option To Buy

10-Year Term Life Insurance Policy - Explained in Detail

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Is Term Life Insurance Plan an Investment or Expense?

Increasing Term Insurance and Riders

What are the Documents Required for Term Insurance Plan?

Everything About Claim Settlement Ratio for Term Insurance

Understanding Term Insurance Riders

Term Insurance Plans and Policies for Smokers

Can I Buy Term Insurance for a COVID-19 Patient?

What are incremental term insurance plans?

9 Ways to Help Family Members in Financial Trouble

5 Things To Consider While Buying Term Insurance Plan

Term Insurance with Critical Illness

How To Calculate The Amount Of Term Life Insurance You Need?

Insuring Against Disability With Disability Insurance Rider

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Insuring Protection Against Death With Death Insurance Rider

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Insuring yourself against Ill Health with a Critical Illness Rider

Is a Term Insurance Policy Portable?

Why Term Plan Should Be The First Step To Securing Your Future?

Why should single women purchase term life insurance?

Choosing Riders for Insurance Plans

What Is a Renewable Term Insurance Policy?

Advantages of Buying Term Insurance in Your 50s

5 Term Insurance Benefits for Single Women

Planning For Children's Future

What is a short term insurance policy?

Gift Your Father A Term Insurance Plan This Father's Day

What is Insurance Premium - A Detailed Guide

Why is it important to buy term insurance plan?

Insurance Policy for Housewife In India

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Why Married People Should Buy Term Insurance Under MWP Act?

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Can You Increase Your Term Insurance Cover?

Ensure Protection Against Death, Disease & Disability With Life Insurance

Which Death Type Does Your Term Plan Not Cover?

Cost of Term Insurance Likely to Increase Soon

5 Reasons to Buy Term Insurance When You are in Your 30s

Term Insurance Calculator - Everythng You Need To Know

Buying A Term Insurance Plan? Take These Factors into Account

8 Things To Do After Buying Term Insurance

Tax Benefits of Term Insurance in India

How Does A Term Life Insurance Work in India?

How Much Term Insurance Do I Need

9 Most Frequently Asked Questions on Term Insurance

Why Term Insurance Is Better Than ULIP?

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Why Buy Term Insurance Plan With a High Cover?

Why Should You Buy Term Insurance in 2022?

Can I Make Changes to My Term Insurance Policy Post Purchase?

Can Senior Citizens Avail Term Insurance?

Is There Any Tax Benefit on Term Insurance?

How to Identify Term Insurance According to Your Needs?

What Should Be The Duration Of Your Term Plan in India?

Why Premium Amount for Term Insurance is So Low?

Is Life Insurance Investment Worthy Enough

While Buying Term Insurance Compare Features, Not Just Premiums

Advantages & Disadvantages of Term Insurance in India

How Not To Get Your Term Insurance Claim Rejected

What Are Insurance Riders and How to Choose Them in a Term Plan?

What Should You opt for - Limited or Premium Pay?

Should You Buy a Term Plan After 40?

Term Insurance – Why You Must Include In Your Financial Planning?

Difference between Term Insurance and Life Insurance

How To Choose the Right Term Insurance Plan?

Top 3 Reasons Why You Should Buy A Term Plan Now

What Happens if you Hide Facts in your Term Insurance?

Know How to Invest at Every Age for Larger Returns

Term Insurance With Riders In India

Planning For Son or Daughter's Wedding

4 Reasons Why You Need Critical Illness Cover

How Much Term Life Insurance Cover Do I Need in India?

Eligibility Criteria for Buying Term Insurance in India

Term Plans are Definitely Cheaper than You Think!

How to Surrender Term Life Insurance When you have No Liabilities

8 Benefits of Term Insurance You Should Know

Do I Need to Give a Medical Test for Term Insurance in India?

Why Should You Not Take A Term Plan Without Medical Test in India?

6 Types of Death not covered in Term Insurance Plan

Is ₹1 Crore Term Insurance Good Enough Cover?

Comparing Term Plans – What Should You Look Out For

Different Types of Premium in Term Insurance

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Make Your Online Term Plan Your Familys Monthly Payout

Do Beneficiaries Pay Taxes on Term Insurance?

Different Types of Protection Plans

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

8 Factors to consider before choosing a Critical Illness Insurance

How Does Term Life Insurance Work? Learn the Benefits

5 Benefits of Early Retirement Planning

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Should Youngsters, Working Couples Buy Term Insurance Plans?

Does Term Insurance Cover Accidental Death?

Can I Extend the Tenure of My Term Insurance Plan?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Why does every working woman need life insurance?

Is It Good To Buy A Term Insurance Plan In 2022?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Can I Get Term Insurance on Behalf of My Spouse?

All you need to Know about Term Insurance Plans for Housewives

What Is the Correct Age to Buy Term Insurance?

What is Term Insurance - A Complete Guide

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

How to Compare Term Insurance Online

Can Term Insurance Plans Be Purchased As A Gift?

What Types of Deaths Are Covered in a Term Insurance Plan?

What is Critical Illness Policy

What All Documents Required For Term Insurance In India?

Why Should New Parents Buy Term Life Insurance?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Term Life Insurance Plan for Smokers vs Non-Smokers

Individual Life Insurance vs. Group Term Life Insurance

6 Reasons That Make Term Insurance a Must Buy

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

How to Buy 1 Crore Life Insurance Policy Without Medical Test