Union budget 2016-17 has not been kind to insurance agents. One Finance Minister Arun Jaitley has not announced any tax saving deduction that they can use as their next sales pitch. Secondly, he has proposed to reduce the threshold for deduction of income tax at source on commission earned.
Now section, 194D provides for deduction of income tax at source at the rate of 5% if the annual commission exceeds Rs 20,000. The budget has proposed to reduce this threshold to Rs 15,000. This means that more insurance agents would get covered under the TDS provision.
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