Section 193 – TDS from Interest on Securities

Section 193 – TDS from Interest on Securities

Who –

Any person responsible for paying any interest on securities to a resident.

When –

Either at the time of credit to the account of the payee or at the time of payment thereof, whichever is earlier

Section 2(28B) – Interest on securities:

Interest on –

  • Security of CG/SG
  • Debentures
  • Other securities
  • issued by or on behalf of a local authority or a company or a corporation established by a Central, State or Provincial Act.

Rate –

  1. 10% (u/s 193, if PAN provided by deductee)
  2. 20% (u/s 206AA, if PAN isn’t provided by deductee)

Non-applicability Clause –

  1. Interest payable to insurance companies (LIC, GIC etc.)
  2. Interest paid or credited through A/c payee cheque to individual/HUF (resident) on the debentures issued by widely held company not exceeding ₹ 5,000
  3. Interest payable on any security issued by a company, where such security is in dematerialized form and is listed on a recognized stock exchange in India
  4. Interest on 8% saving (Taxable) Bonds 2003 issued by CG not exceeding ₹ 10,000
  5. Furnishing of self-declaration under Form No. 15G/15H
  6. Any payment made to –
  • New Pension System Trust referred to in section 10(44)
  • Securitization trust referred to in section 10(23DA)

7. Entities who are required to file their return of income under section 139(4A) or 139(4C) i.e. Trusts & Educational Institutions which have applied for non-deduction vide Form No. 13

8. Entities whose income is unconditionally exempt under section 10 and who are statutorily not required to file return under section 139.

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