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1) Finance Act 2014 has introduced a new provision in the Income Tax Act for tax deduction at source (TDS) on insurance policies. It shall be effective from 1 October 2014.2) If the policy proceeds, whether interim or on maturity, exceed Rs 1 lakh, the amount shall be subject to TDS at the time of payment to the policyholder.3) If the policyholder has registered his PAN with the insurer, the TDS shall be 2% of the policy proceeds. If he hasnтАЩt done so, the TDS shall be 20% of the proceeds.4) The TDS provisions shall not apply to a policy that is not exempt from tax under Section 10(10D) of the Income Tax Act.5) If the PAN details have not been provided, the policyholder shall not be able
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