Any resident receiving any amount (more than Rs. 1,00,000/-) under a life insurance policy (including bonus) shall be deducted a tax deducted at source at the rate of 1% by the person responsible for paying the sum.
However, in case the amount so received during the financial year in aggregate does not exceed Rs. 100,000, TDS under this section shall not be made.
The amount so received (including the sum allocated by way of bonus on such policy) by the assessee shall be declared as Income from Other sources while filing the Return of Income.
TDS under sec 194DA shall be deducted only if the amount paid is not exempted from tax as per Sec 10(10D).