Insurance
by
Seema - February 1, 2008 - 0 comments
Insurance is a contingent expense. Many of us do not wish to go for insurance until and unless pressed upon the same. The idea of life insurance or general insurance might occur only when most of us face the issues of tax returns or calculating the risk-loss metrics. Insurance is not yet viewed as a product in India.
Insurance Policies, in India, had never been an attractive investment options so far. Till few years from now, key highlight of insurance had been the tax savings option. Now with no arbitrary sub limits in section 80C (earlier section 88), this angle too is irrelevant as in most cases, PF deduction by employer or principal amount paid for housing loan are sufficient to meet the upper limit stipulated under the Income Tax Act.
Routine aspects relating to deduction of Income Tax at Source are well known. These are some aspects relating to deduction of Income Tax at Source which are not too well known but useful for day to day administration of scheme of TDS.
TAX DEDUCTION AND COLLECTION ACCOUNTNUMBER: (S.203A):
Insurance has been most abused area in Indian Context. Typically insurance companies have been appointing agents with “network”; read persons who have large social circle which they can exploit. These agents are paid steep remuneration and would rarely guide you about fine prints of policies and have tendency to lure you for the policies which carries higher commission.
