Nature Of Payment
“Interest of securities”
EXCEPTIONS:
- Interest payable on notified debenture, bonds and other securities
For Example, National defence Bonds, 1972; National defence Loans, 1972 National developments Bonds
- Interest payable on securities of Central Govt. / State Govt.[However TDS is necessary in case of 8% saving (Taxable) Bonds,2003]
- Interest on debenture, if following conditions are satisfied:-
- Payee is an individual
- Payer is a widely-held company
- Debenture are listed on a recognized stock exchange in India
- Payment is made by an “A/c payee” cheque
- The amount of interest payable during a financial year does not exceeds Rs.2500/-
- If the payee is –
- A fund established for the benefit of armed forces;
- Ramakrishna mission;
- Regimental funds;
- Employee’s provident funds
- LIC,GIC and other insurer.
Interest payable on any security issued by a company, where such security is in dematerialized from and is listed on a recognized stock exchange in India.