[Section 193]- TDS from Interest on Securities

 

Table of Contents

·         1.   Who is liable to deduct TDS from Interest on Securities

o    Person responsible for deduction of tax at source [Section 204(ii)]:

·         2.   When does liability to deduct TDS from Interest on Securities arise:

·         3.   Rate of TDS for Financial Years 2019-20 and 2020-21 in case of Interest on Securities

o    (1). In the case of a person (other than a company) resident in India

o    (2). In the case of a Domestic Company

·         4.   Exemption from TDS Deduction from Interest on Securities

·         5.   Where no Tax is to be Deducted at Source from Interest on Securities

o    (A)   Interest Payable to insurance companies. etc.:

o    (B) Interest paid or credited by widely held company not exceeding Rs. 5,000 :

o    (C)   Any interest payable on any security issued by a company, where such security is in dematerialised form and is listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 and the rules made thereunder.

o    (D)   Interest paid or credited on 8% Saving (Taxable) Bonds 2003 / or 7.75% Savings (Taxable) Bonds, 2018 issued by the Central Government provided the interest on such bonds does not exceed Rs. 10,000.

o    (E)   Where a self declaration under Form No. 15G/15H is furnished by a particular person [Section 197A(1A). (1B) and (1C)]:

o    (F)   Any payment made to New Pension Scheme Trust [Section 197A(1E)]:

o    (G)   No deduction of Tax from Specified payment to Notified institutions, association or body, etc. [Section 197A(1F)]:

o    (H)   Certain entities required to file return under section 139(4A) or 139(4C) [Rule 28AB]: .

o    (I) Certain entities whose income is unconditionally exempt under section 10:

·         6.   Where the TDS either not to be deducted or to be deducted at Lower Rate [Section 197 Rule 28 and 28AA]

 


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