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Tax year 2026-27

Section 393(1) Sl. No. 1(i) TDS: insurance commission

Earlier Section 194D · Code 1005

From 1 April 2026, TDS on insurance commission is deducted under Section 393(1), Table Sl. No. 1(i), of the Income-tax Act, 2025, with section code 1005. It was earlier deducted under Section 194D of the Income-tax Act, 1961.

TDS calculator: Section 393(1) Sl. No. 1(i)

Section 393(1) Sl. No. 1(i) at a glance

PaymentNew sectionCodeRateThresholdOld section
Insurance commission (payee other than a company)393(1) Sl. No. 1(i)10055%₹20,000194D
Insurance commission (payee is a domestic company)393(1) Sl. No. 1(i)100510%₹20,000194D

The rate depends on the payee

Insurance commission paid to a payee other than a company carries TDS at 5%; paid to a domestic company, at 10%. Both are reported under code 1005 and apply above ₹20,000.

Other commission and brokerage is covered under Section 393(1) Sl. No. 1(ii), code 1006 (earlier Section 194H). See the guide to Section 393(1) Sl. No. 1(ii).

Worked example. On ₹40,000, TDS at 5% (code 1005) is ₹2,000, and ₹38,000 is paid.

Rates are before any surcharge and cess. Lower-deduction certificates, payees without a PAN and other conditions in the Act can change the TDS. This page is a general guide, not tax advice: confirm with your CA or the sources below.

FAQ

Questions, answered

Insurance commission (payee other than a company): Section 393(1) Sl. No. 1(i) (code 1005). Insurance commission (payee is a domestic company): Section 393(1) Sl. No. 1(i) (code 1005). It was earlier Section 194D of the Income-tax Act, 1961.

Insurance commission (payee other than a company): 5%; insurance commission (payee is a domestic company): 10%. Rates are before any surcharge and cess.

₹20,000.

Other TDS sections

Section 392Codes 1001–1004 · SalaryEarlier Section 192 Section 393(1) Sl. No. 1(ii)Code 1006 · Commission and brokerageEarlier Section 194H Section 393(1) Sl. No. 2(i)Form 141 · Rent paid by individualsEarlier Section 194IB Section 393(1) Sl. No. 2(ii)Codes 1008, 1009 · RentEarlier Section 194I Section 393(1) Sl. No. 3(i)Form 141 · Purchase of propertyEarlier Section 194IA Section 393(1) Sl. No. 5Codes 1020–1022 · Interest other than on securitiesEarlier Section 194A Section 393(1) Sl. No. 6(i)Codes 1023, 1024 · ContractorsEarlier Section 194C Section 393(1) Sl. No. 6(ii)Form 141 · Payments by individuals and HUFsEarlier Section 194M Section 393(1) Sl. No. 6(iii)Codes 1026–1028 · Professional and technical feesEarlier Section 194J Section 393(1) Sl. No. 8(ii)Code 1031 · Purchase of goodsEarlier Section 194Q Section 393(1) Sl. No. 8(iv)Codes 1033, 1034 · Business perquisitesEarlier Section 194R Section 393(1) Sl. No. 8(v)Code 1035 · E-commerce operatorsEarlier Section 194O Section 393(3) Sl. No. 5Codes 1064, 1065 · Cash withdrawalsEarlier Section 194N Section 393(3) Sl. No. 7Code 1067 · Payments to partnersEarlier Section 194T

Complete TDS rate chart for tax year 2026-27 →

Section 393 explained →   TDS section codes list →

Sources

Taken only from the Income Tax Department's official publications, as in force on 17 October 2026:

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