Ak's Blog

Sec 194DA: TDS on sum received under life insurance policy 1.        What is the amendment in the sec 194DA as per finance bill, 2019? In section 194DA of the Income-tax Act, for the words “one per cent”, the words“five per cent on the amount of income comprised therein” shall be substituted with effect from the 1st day of September, 2019. 2.        Discuss the provision of section 194DA before amendment by finance bill, 2019? Under section 194DA of the Act, a person is obliged to deduct TDS, if it pays any sum to a resident under a life insurance policy which is not exempt under sec 10 (10D). At present, TDS is required to be deducted @ 1% on such sum at the time of payment. However, TDS is not deductible if the amount of such payment is less than one lakh rupees. As per Section 10(10D), any sum received under life insurance policy, including the sum allocated by way of bonus on such policy, is exempt in any...

Rate of income tax as per finance act, 2019 Rate of income tax – Surcharge and Tax rate for company I. Rates of income-tax in respect of income liable to tax for the assessment year 2019-20 There is no change in this part. It is same as provided earlier. In respect of income of all categories of assessees liable to tax for the assessment year 2019-20, the rates of income-tax have been specified in Part I of the First Schedule to the Bill. These are the same as those laid down in Part III of the First Schedule to the Finance Act, 2018 for the purposes of computation of “advance tax”, deduction of tax at source from “Salaries” and charging of tax payable in certain cases. 1) Surcharge on income-tax The amount of income-tax shall be increased by a surcharge for the purposes of the Union,— (a) in the case of every individual or Hindu undivided family or every association of persons or body of individuals , whether incorporated or not, or every artificial jurid...