PLI RPLI Policies TDS Deduction @5% rate on Maturity Payment of exceeding Rs 1 Lakh
Subject: - Deduction of TDS @5% on payment of Maturity of PLI/RPLI policies exceeding Rs. 1 lakh during a financial year - reg.
Download PLI RPLI Policies TDS Deduction @5% rate on payment of maturity 2023 in PDF
F. No. 65-02/2023-L1 Govt. of India Ministry of Communications Department of Posts Directorate of Postal Life Insurance Chanakyapuri PO Complex, New Delhi — 110 021. Dated 09.08.2023 All Heads of Circle
It has come to notice of this Directorate that the provisions of 194DA of the Income Tax Act were not followed by the field units and TDS @5% is not being deducted during maturity claim of PLI RPLI policies exceeding Rs. 1 lakh (except Death claim as per Sec 10D) during a financial year. Non — deduction of TDS from the maturity proceeds of PLI/RPLI policies has resulted Audit paras.
In this regard, it is intimated that in present scenario there is no provisions in McCamish software to deduct the TDS from the maturity value at the time of processing of maturity claims. Submission of PAN is also not mandatory. Matter has been taken up to incorporate the same in the system.
Meanwhile, it is requested to kindly issue necessary instructions to all concerned for deduction of TDS @5% at the time of maturity of PLI RPLI policies as applicable as per the provisions of Sec 194DA of IT and its amendment of 2019.
This is issued with the approval of CGM (PLI). (Sachidanand Prasad) General Manger (Finance)
