Explanation
Section 194DA of IT Act 1961 (consolidated under §393 in IT Act 2025) applies when an insurer pays life insurance maturity proceeds that are NOT exempt under Section 10(10D)/§11. Not exempt cases include: sum assured < 10× annual premium for post-March 2012 policies, keyman policies, single-premium policies with SUM < 1.25× premium. TDS rate: 5% on the income component (maturity proceeds minus total premiums paid). Threshold: ₹1,00,000 aggregate per policy per year. If PAN not provided: TDS at 20% under §206AA. Verify on the income-tax portal before filing.