Payment in respect of life insurance policy.

Any person responsible for paying to a resident any sum under a life insurance policy, including the sum allocated by way of bonus on such policy, other than the amount not includible in the total income under clause (10D) of section 10, shall, at the time of payment thereof, deduct income-tax thereon at the rate of 5[one per cent.]:

¹ Ins. by Act 21 of 1973, s. 17 (w.e.f. 1-4-1973).

² Ins. by Act 11 of 1987, s. 48 (w.e.f. 1-6-1987).

³ Subs. by Act 28 of 2016, s. 75, for “twenty thousand rupees” (w.e.f. 1-6-2016). Earlier the quoted words were substituted by Act 14 of 2010, s. 38, for “five thousand rupees” (w.e.f. 1-7-2010).

⁴ Ins. by Act 25 of 2014, s. 57 (w.e.f. 1-10-2014).

⁵ Subs. by Act 28 of 2016, s. 76, for “two per cent.” (w.e.f. 1-6-2016).

Provided that no deduction under this section shall be made where the amount of such payment or, as the case may be, the aggregate amount of such payments to the payee during the financial year is less than one hundred thousand rupees.]