Scope of provision of the section requiring deduction of tax at source from insurance commission explained
Circular : No. 112 [F. No. 275/64/73-ITJ], dated 31-5-1973.
1. The Finance Act, 1973 has introduced a new section 194D with a view to providing for deduction of income-tax at source, at such rates as may be prescribed in the Finance Act of the relevant year, from payments of income by way of insurance commission. For this purpose, “insurance commission” will mean any income by way of remuneration or reward whether by way of commission or otherÂ¬wise for soliciting or procuring insurance business (including