CoolInterview.com - World's Largest Collection of Interview Questions & Answers, FAQs, queries, sample papers, exam papers, dumps, what, why, how, where, when questions
Our Services
Get 9,000 Interview Questions & Answers in an eBook.




Get it now !!
Send your Resume to 6000 Companies

Search Interview Questions

Question: Is TDS now being deducted on insurance policies?

Answer: The government introduced the changes in TDS for insurance policies as per the New Finance Bill of 2014. A new section 194 DA has been introduced in the income tax Act of 1961 for this effect. As a result tax is deducted at source on payouts for all insurance policies exceeding Rs. 1 Lakhs in a financial year which are not exempted for income tax under section 10(10D). The quantum of TDS deduction is fixed at 2 % on the total sum to be paid to the policyholder with a valid and registered PAN number. In case the policyholder does not have a valid PAN which is registered, a total of 20% tax is deducted at source.



Category Insurance Interview Questions & Answers - Exam Mode / Learning Mode
Rating (0.7) By 163 users
Added on 7/13/2016
Views 1306
Rate it!
Question: Is TDS now being deducted on insurance policies?
Answer:

The government introduced the changes in TDS for insurance policies as per the New Finance Bill of 2014. A new section 194 DA has been introduced in the income tax Act of 1961 for this effect. As a result tax is deducted at source on payouts for all insurance policies exceeding Rs. 1 Lakhs in a financial year which are not exempted for income tax under section 10(10D). The quantum of TDS deduction is fixed at 2 % on the total sum to be paid to the policyholder with a valid and registered PAN number. In case the policyholder does not have a valid PAN which is registered, a total of 20% tax is deducted at source. Source: CoolInterview.com



If you have the better answer, then send it to us. We will display your answer after the approval

Rules to Post Answers in CoolInterview.com:-

  • There should not be any Spelling Mistakes.
  • There should not be any Gramatical Errors.
  • Answers must not contain any bad words.
  • Answers should not be the repeat of same answer, already approved.
  • Answer should be complete in itself.

Post your answer here

Inform me about updated answers to this question.
Related Questions
View Answer
If I start a company with a new product can I get my product insured for any quality issue?
View Answer
Will I get full refund of the premium paid, if I cancel my policy within the free lock period?
View Answer
How can I find out if the insurance agent is authorized to sell life insurance policy?
View Answer
How do I make a claim of my insurance policy? How long will it take to get the final settlement?
View Answer
What happens when I fail to make the required premium payments on the due date?
View Answer
Is it advisable to cancel my existing policy and replace it with another?
View Answer
How do I convert my existing paper insurance policy to electronic form?
View Answer
What is Incurred Claim Ratio in insurance?
View Answer
Who can apply to become a TPA with an insurance company?
View Answer
Does CSR (Claim Settlement Ratio) of an insurance company include wrong or fraudulent claims too?
View Answer
Can I buy a family floater insurance plan for my in-laws?
View Answer
What is the difference between sum assured and sum insured?
View Answer
Why do different insurance companies show different benefit illustration on their website or product brochures?
View Answer
Has there been any change in service tax for insurance premium after budget?
View Answer
What is underwriting in insurance?
View Answer

Please Note: We keep on updating better answers to this site. In case you are looking for Jobs, Pls Click Here Vyoms.com - Best Freshers & Experienced Jobs Website.

View All Insurance Interview Questions & Answers - Exam Mode / Learning Mode




India News Network
Latest 20 Questions
Payment of time- barred debt is: (a) Valid (b) Void (c) Illegal (d) Voidable
Consideration is defined in the Indian Contract Act,1872 in: (a) Section 2(f) (b) Section 2(e) (c) Section 2(g) (d) Section 2(d)
Which of the following is not an exception to the rule, "No consideration, No contract": (a) Natural love and affection (b) Compensation for involuntary services (c) Completed gift (d) Agency
Consideration must move at the desire of: (a) The promisor (b) The promisee (c) The promisor or any other party (d) Both the promisor and the promisee
An offer which is open for acceptance over a period of time is: (a) Cross Offer (b) Counter Offer (c) Standing Offer (d) Implied Offer
Specific offer can be communicated to__________ (a) All the parties of contract (b) General public in universe (c) Specific person (d) None of the above
_________ amounts to rejection of the original offer. (a) Cross offer (b) Special offer (c) Standing offer (d) Counter offer
A advertises to sell his old car by advertising in a newspaper. This offer is caleed: (a) General Offer (b) Special Offer (c) Continuing Offer (d) None of the above
In case a counter offer is made, the original offer stands: (a) Rejected (b) Accepted automatically (c) Accepted subject to certain modifications and variations (d) None of the above
In case of unenforceable contract having some technical defect, parties (a) Can sue upon it (b) Cannot sue upon it (c) Should consider it to be illegal (d) None of the above
If entire specified goods is perished before entering into contract of sale, the contract is (a) Valid (b) Void (c) Voidable (d) Cancelled
______________ contracts are also caled contracts with executed consideration. (a) Unilateral (b) Completed (c) Bilateral (d) Executory
A offers B to supply books @ Rs 100 each but B accepts the same with condition of 10% discount. This is a case of (a) Counter Offer (b) Cross Offer (c) Specific Offer (d) General Offer
_____________ is a game of chance. (a) Conditional Contract (b) Contingent Contract (c) Wagering Contract (d) Quasi Contract
There is no binding contract in case of _______ as one's offer cannot be constructed as acceptance (a) Cross Offer (b) Standing Offer (c) Counter Offer (d) Special Offer
An offer is made with an intention to have negotiation from other party. This type of offer is: (a) Invitation to offer (b) Valid offer (c) Voidable (d) None of the above
When an offer is made to the world at large, it is ____________ offer. (a) Counter (b) Special (c) General (d) None of the above
Implied contract even if not in writing or express words is perfectly _______________ if all the conditions are satisfied:- (a) Void (b) Voidable (c) Valid (d) Illegal
A specific offer can be accepted by ___________. (a) Any person (b) Any friend to offeror (c) The person to whom it is made (d) Any friend of offeree
An agreement toput a fire on a person's car is a ______: (a) Legal (b) Voidable (c) Valid (d) Illegal
Cache = 1.453125 Seconds