letter dated 28.07.2026 send to all HoCs..pdf
65-02/2023-LI
To,
F. No. 65-02/2023-LI
भारत सरकार/Government Of India संचार मंत्रालय/Ministry of Communications
डाक विभाग/Department of Posts
डाक जीवन बीमा निदेशालय / Directorate of Postal Life Insurance
चाणक्यपुरी डाकघर परिसर, नई दिल्ली – 110021 दिनांक: 28.07.2026
All Heads of Circle
Subject: Guidelines regarding deduction of applicable TDS on incentive paid to sales force on PLI/RPLI policies -reg.
Madam/Sir,
This is regarding applicability of TDS on incentive paid to Sales force on PLI/RPLI policies.
2) Income Tax TDS is applicable on PLI & RPLI incentive paid to the sales force as per section 393 of new Income Tax Act 2025 (earlier referred as 194D of Income Tax Act 1961). However, it has come to notice of this Directorate that as per existing provision in McCamish, TDS is being calculated at agent-profile level rather than being consolidated at PAN level.
3) However, as per Income Tax Act, TDS should be deducted at PAN level. To deal with the situation, it has been decided by competent authority that TDS @ 20% may be deducted for sales force IDs without PAN mapping till the changes are incorporated in the system. The TDS shall be applicable on the incentive amounts with rate mentioned against each as per the Annexure A. The DDOS should ensure that TDS applicability is ascertained/calculated by combining the incentive amounts of all agent-profiles of an individual sales-force/agent and income tax (TDS) is deducted accordingly, if applicable.
4) It is requested to kindly issue necessary instruction/guidelines to the concerned DDOS under your jurisdiction to deduct TDS on incentive paid to Sales force on PLI/RPLI policies in accordance with Income Tax Act & Rules and maintain manual records of such cases for correct TDS reporting, and also sensitize/advise the sales force accordingly for ITR filing.
This issues with the approval of the competent authority.
@pany
वरिष्ठ लेखा अधिकारी / Sr. Accounts Officer
Copy to:-
DDM (Technology), PLI Directorate - w.r.t. email dated 14/07/2026
1/341094/2026
65-02/2023-LI
Annexure A
Type of Payment
TDS applicability
Rate of TDS
is not Not applicable
1. Any Incentive amount paid to Sales force TDS equal or less than Rs. 20,000/- in a applicable financial year (Combining all agent
profiles of an individual)
below
2. Any Incentive amount paid to Sales force TDS is applicable | As mentioned above Rs. 20,000/- in a financial year (Combining all agent profiles of an
individual)
a)
If PAN card is not provided by Sales TDS force or PAN card is Invalid
will bel
20%
applicable higher rate
atl
will be
2%
b) Form 121 (earlier referred as Form TDS 15G/15H) is not provided by the Sales applicable force and valid PAN card is provided by
Sales force (Combining all agent profiles of
an individual)
c)
Form 121 (earlier referred as Form No TDS will be Not applicable 15G/15H) is provided by Sales force along applicable.
with valid PAN number.
1/341094/2026