Rate of TDS on Interest on Debenture, Bonds and other Listed Securities under section 193 of the Income Act

October 18, 2012 admin TDS, 0

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.

TDS Rate on Bank Fixed Deposit Interest

List of Investment Available or Approved under Section 80C for Deduction from Income Tax Rate of TDS on Dividend Income under section 194 of the Income Tax Act