Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

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

Tax deduction at source (TDS) is done by the employer while paying its employee (salary/wages) on taxable income; at the time of payment. This then creates a TDS Certificate for filing TDS return.

  • Feb 08, 2022
  • 14,234 Views

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.

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Download Brochure

Features

  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Income Tax Deductions for Disabled Persons Under Section 80U

Understanding Tax Exemptions in ULIP (Old and New)

Income Tax Calculator: How Life Insurance Policies are Taxed? Explained

How to File Income Tax Return without Form 16

Difference Between Gross Income & Total Income in Calculating Income Tax

Why January Is an Important Month for Saving Tax?

Tax Benefits for Startups in India

How Inflation Affects Savings and Investment?

Tax Structure in India

What is TDS (Tax Collected at Source)? A comprehensive guide

What is Tax Evasion, and What are the Penalties for Tax Evasion in India?

What is an Endowment Plan?

How To Invest In Guaranteed Return Plans For Higher Returns And Financial Security?

How to Save Tax on Salary Arrears?

How to Get Form 16?

Guide for Tax Calculation on your Salary

Tax-Free Income in India

Section 16 of the Income Tax Act (ITA), 1961

Income Tax Benefits for Doctors

What is TDS Exemption Limit?

How to Claim a Tax Refund?

Top 8 Tax-Saving Methods in India- Budget Planning

How Should I Allocate A Monthly Savings Plan For Long-Term Benefits?

What is Salary Protection Insurance and Why You Need It

What is the Maximum Maturity Benefit in Assured Savings Plans?

How to Calculate returns on an assured savings plan?

Types of Riders in Insurance Policy

What is ITR & How to File Income Tax Return?

All you need to know About Tax on Inheritance

sections Under Section 80C of the Income Tax Act, 1961

Tax Season is Coming- Know How to Save Tax

What is better - Guaranteed Savings Plan or Fixed Deposit?

धारा 80डी आयकर अधिनियम, 1961

Union Budget 2023 and Tax Exemptions on Life Insurance Premium Over ₹5 Lakhs

धारा 80सी आयकर अधिनियम, 1961

प्रधानमंत्री सुरक्षा बीमा योजना

Tax Planning and Tax Benefits of Life Insurance

Budget 2019: Impact on the Common Man in India

How to save tax for salaried person?

How to file Form 16 online?

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

Saving Plans to Give Children a Debt-free College Education

All about TDS Payment Online & Due Dates

How to File TDS Return?

9 Unusual Investments you Didn't Know for Saving Taxes in India

Why is Form 16 Important?

Tax Planning Tips for a Newly Married Couple

प्रत्यक्ष कर और अप्रत्यक्ष कर में क्या अंतर है?

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

What is Tax Deduction at Source (TDS)?

Union Budget 2023: Impact on Life Insurance

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

A Complete Guide for Filing ITR 3 Form

How to View 26AS and Download Form 26AS Online?

Why PAN Card is Essential for Income Tax Filing?

How can I get Form 16B from traces?

How Do Assured Savings Plans Work and Why You Should Consider One?

What is Rule 132 of Income Tax? How Does it Affect You?

Impact of GST on Life Insurance in India

What is capital gains tax, and how it works?

Are Financial Planning and Tax Planning the Same Thing?

Difference between Section 80C, 80CCC, 80CCD & 80D

Section 44AD of Income Tax Act for AY 2021-22

What is indirect tax and its types?

Personal Finance - Meaning, Importance, and Tips for Personal Finance

Income Tax Exemption for Physically Handicapped Dependent

What is the TDS Rate on Salary?

आयकर रिटर्न (आईटीआर) फॉर्म के प्रकार

Tax Rate Chart for FY 2022-2023: What is TDS Slab?

How to E-Verify ITR: A Step-by-Step Guide to Electronically Verify your Income Tax Return

How to Download Form 16?

Guaranteed Return Plans-Why is it a must for you?

What is Form 16A?

Complete Savings Plan for Low Income Earners

How to File ITR Online

सुकन्या समृद्धि योजना (SSY) के कर लाभ क्या हैं?

आयकर स्लैब 2021-2022

How to Save Income Tax with Insurance

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

What is the Percentage of Tax Deducted at Source (TDS)?

Things to Do After Filing Income Tax Returns

What is the Difference between Form 16 and Form 16A?

What is Form 26AS - All You Need To Know

Should you prefer a Guaranteed Savings plan over monthly income schemes?

What is the Difference Direct Tax and Indirect Tax

Tax Saving for Self Employed in India

How to create wealth through a savings plan?

Is PF Withdrawal Taxable for NRI?

Form 16, Form 16A, and Form 16B?

Income Tax Filing For NRI in India

ITR-6: Guide to filing ITR-6 Form online

Understand ITR4 Form: How to Fill, Structure & Determine Your Eligibility

How To Save Tax Using Life Insurance?

TDS Due Dates of FY 2022-23 For Return Filing

इनकम टैक्स रिटर्न कैसे फाइल करें?

How to File Form 16 for Salaried Employees?

How to Check Income Tax Refund Status Online in India

How to View 26AS and Download Form 26AS Online

5 Popular Tax-Saving Schemes in India

What Investment Options Come with Tax Incentives?

Should one prefer a guaranteed savings plan over monthly income schemes?

Highlights of the Union Budget 2023-24

हाउस रेंट अलाउंस क्या है और इसके छूट की गणना कैसे की जाती है?

How much gold can you keep at home? Limits and income tax rules explained

Tax Deductions You MUST Know

Insurance and Endowment: Everything You Need to Know!

Income Tax Deduction Under Section 80CCC In India

Tax Saving Tips: Best Ways to Save Income Tax for 2021

How to File Income Tax Return - Everything You Need to Know

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

How To Save Tax Better with 80C

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

How to e file ITR on Income Tax Government Portal

What is Section 80C Deduction?

ITR 2 Form – Complete Guide

Personal Finance - How to Deal with Emergencies When Preparing Finances

Tax-Savings Investments and Options in India

All You Need To Know About Assured Savings Plan

What is Section 80C - Explained in Detail

Tax Benefit of Investing in Term Plan

How can NRIs prevent double taxation in India?

How to Boost Your Savings with Guaranteed Results

What are the Different Types of Taxes in India?

What are Direct Taxes? How to Avoid being Overtaxed?

All You Need to Know About Section 80C

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

All about TDS on Salary under Section 192 – Kotak Life

Who Should Invest In Savings Plan

Home Investment Plan to Buy Dream Home

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

What is TDS Refund Process?

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

भारत में महिलाओं के लिए सरकारी योजना

What is the Difference between Assessment Year (AY) and Financial Year (FY)?

What is TDS Slab?

Section 80C Deductions as per Income Tax Act, 1961

Post Office Savings Scheme - All You Need to Know

Presumptive Taxation for Business and Profession

Easy ways to make personal savings plans

What To Do If Your TDS Is Not Deposited With The Government?

Income Tax Exemption for Disabled

Income Tax Effects on Salary Deductions in the Union Budget 2023

What is EEE in income tax? 5 tax-free investment options to become crorepat

Saving Income tax in 2017 - 18

Do Beneficiaries Pay Taxes on Life Insurance?

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2021-22 & 2022-23

Section 80G of the Income Tax Act

Difference Between Guaranteed and Assured Returns

Basics of Guaranteed Savings Plan

Best Savings plan for the middle class in India

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

E-Filing of Income Tax Returns in India

Section 80E: Tax Exemption on Interest on Education Loan

Invest in Tax-Free Bonds: Understanding the Benefits and Who can Invest?

How to Check Income Tax Returns Status Onine?

What Is Advance Tax and How Is It Calculated?

What is Section 10D of the Income Tax Act?

TDS rules on the sale of jointly owned property

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

Why Tax Planning Should Be an All-year Round Activity

3 Tips to Buy Guaranteed Savings Plan

How Much Money This Budget 2019 Can Help You Save

What is the difference between TDS and TCS?

How to File Income Tax Return for First Time Tax Payers

Plan your Daughter's Wedding With Best Monthly Savings Plan

What is Form 16B?

Save Income Tax by 31st March: Here Is a Checklist

Have You Considered Term Insurance a Part of Your Tax Planning?

Tax Saving Guide for 2019-20

Investing Lump Sum Amount

Tax Exemption and Scope of Coverage

स्रोत पर कर कटौती (टीडीएस) क्या है?

List of Important Income Tax FAQs

ITR 1: Sahaj Form

Types of Income Tax Return (ITR) Forms

Interest Imposed Under Sections 234A, 234B and 234C

Tax Saving Options for Salaried Employees

8 Things to Help You Select a Savings Investment plan

How to create a savings plan and make good investment choices

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

What is a savings plan?

Tax Benefits of ULIP Plans Available for NRIs

Penalty For Late Filing TDS Return

9 Income Tax Myths That Could Cost You Money while Filing returns

Problems People Face with Tax Returns after a Job Change

How to Pay Advance Tax Online in India

Tax Saving Options other than Section 80C

12 Tax Changes in Budget 2022 that May Impact Your Personal Financial Planning

Money Saving Tips for Single Women

What is Section 80CCC of the Income Tax Act 1961

Income Tax Deductions Under Section 80C

A Comprehensive Guide to Understand the ITR 7 Form

Income Tax Filing Using Multiple Form 16

What is Section 80C Deduction Limit?

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

How to File Form 10E for Tax Relief on Salary Arrears?

Challan 280 - How to Use Challan 280 to Pay Income Tax

Key Changes of the Union Budget 2023 You Must Know

Maximize Your Savings: Tax Tips for Salaries Above ₹20 Lakhs

What is ITR 5 Form and How to File ITR 5?

Financial Benefits and Government Schemes Every Woman in India Should Know

Financial Planning and Best investment options for Housewives

Importance of Savings Plan You Need to Know

Tips to plan your savings in 2022

How to Check Income Tax Refund Status Online in India

What are Deferred Savings Plans?