Budget TDS Rate Cut: How It Will Impact Your Wallet | Paisa Live

The government has reduced TDS rates from 5% to 2% on various types of payments, including those made by life insurance companies. This change is expected to directly benefit policyholders. According to Section 194D of the Income Tax Act, the TDS on maturity proceeds of life insurance policies will now be deducted at a rate of 2% instead of the previous 5%. This reduction in TDS rates will result in more money being retained by policyholders at the time of maturity, providing a financial advantage. The adjustment aims to ease the tax burden on individuals receiving maturity benefits from their life insurance policies. To know more about this check out the full story on Paisa Live