Revision of rate of TDS deduction on payment of PLI & RPLI policies w.e.f. 01.10.2024 in Post Offices

Revision of TDS deduction rate on payment of PLI & RPLI policies from 5% to 2% effective from 01-10-2024

• The rate of Tax Deduction at Source (TDS) applicable on payment of life insurance policy payments under Section 194 DA of the Income Tax Act has been amended from 5% to 2% with effect from 01-10-2024.
• This revision is as per the Gazette Notification S.18 Dated 16.8.2024, Finance Act 2024.

F. No. 65-02/2023-LI

Govt. of India

Ministry of Communications Department of Posts

Directorate of Postal Life Insurance

Chanakyapuri PO Complex,

New Delhi 110 021.

dated 04.10.2024

To
All Head of Circles

Subject: Revision of rate of TDS deduction on payment of PLI & RPLI policies w.e.f. 01.10.2024 - reg.
Ref: Finance Bill 2024 issued by Ministry of Finance

Madam / Sir,

I am directed to intimate that as per the Gazette Notification S. 18 Dated 16.8.2024, Finance Act 2024 has been notified. Under Clause 54 of the above said Notification, the rate of Tax Deduction at Source (TDS) applicable on payment of life. insurance policy payments under Section 194 DA of the Income Tax Act, has been amended from 5% to 2% with effect from 01-10- 2024. Extract of the amendment is reproduced below: Clause 54

"In section 194 DA of the Income-tax Act, for the words "five per cent.", the words "two per cent." shall be substituted with effect from the 1st day of October, 2024."

It is requested to disseminate it to all concerned for information and necessary action.

(Sahabuddin Laskar)

Accounts Officer (PLI)

Copy to:
1. Sr. PPS to Member (PLI)