Income-tax Act, 1961Section 194D
- TDS on insurance commission above ₹20,000 a year
- 2% for non-company payees, 10% for companies (FY 2025-26)
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 194D
TDSSection 194D → Section 393
TDS on insurance commission
Section 194D of the old Income-tax Act, 1961 · new section 393 under the Income-tax Act, 2025
New reference Section 393(1), Table Sl. No. 1(i)
Income-tax Act, 2025Section 393(1), Table Sl. No. 1(i)
- Section 393(1), Table Sl. No. 1(i): rates in force
- Threshold ₹20,000
- Other commission and brokerage (old 194H) is Sl. No. 1(ii)
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Consolidated into section 393; the rate is now set by the Finance Act's 'rates in force' rather than in the section.
Practice notes
- Check the Finance Act for the applicable rate each year.
Frequently asked
What is the TDS on insurance commission under the new Income Tax Act 2025?
Section 393(1), Table Sl. No. 1(i), at rates in force, where commission exceeds ₹20,000 a year.
What is section 194D called in the new Income-tax Act, 2025?
Section 194D of the Income-tax Act, 1961 corresponds to Section 393(1), Table Sl. No. 1(i) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 194D under the new Income Tax Act?
Consolidated into section 393; the rate is now set by the Finance Act's 'rates in force' rather than in the section.
Is section 194D still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 194D of the 1961 Act. Section 393(1), Table Sl. No. 1(i) of the 2025 Act applies from tax year 2026-27.