TDS from Interest on Securities u/s 193 – Quick Summary
|Person Responsible to Deduct Tax||Government/ Local/ authority/ statutory corporation company Central Govt. in case of 8% (taxable saving bonds)|
|Exemption Limit||For debenture issued by public company to Individual/HUF if interest does not exceed Rs.5000 during the previous year and the same is paid by account payee cheque
Individual holding 6.5% Gold Bonds or 7% Gold Bonds, 1980 provided that the nominal value of bonds does not exceed Rs.10,000/-
|Time of Deduction of TDS||At the time of Payment or credit whichever is earlier.|
|Time for Deposit of TDS||Within one week from the last day of the month of tax deduction. For month of March, before 30th April.|
|Certificate of TDS||Form 16A for each quarter is to be issued within 15 days from the due date for furnishing the statement of tax deducted at source under rule 31A i.e. on or before 15th August, 15th November, 15th February and 15th June|
|Quarterly Return of TDS||In Form No.26Q on or before 31st July, 31st October and 31st January for the first three quarters and on or before 31st May for the last quarter.|
|AO’s Certificate for Deduction at Lower Rate or Non Deduction||Yes|
|Is Self Declaration by Payee for Non Deduction Admissible||Yes it can be filed, by person other than Company or Firm. Declaration to be submitted in duplicate in Form No. 15G/15H.|
No TDS Required If Interest is Paid
- To LIC, GIC or other insurers
- Listed D-Mart Securities
- To Individual on 4.25% National Defence Bonds, 1972 or 4.25% National Defence Loans, 1968 or 4.75% National Defence Loan, 1972.
- National Development Bonds
- 7 Years National Saving Certificates (IV- Issue)
- 54EC Capital Gains Bonds issued by Power Finance Corp Ltd. or Indian Railway Finance Corp Ltd.
- Individual holding 6.5% Gold Bonds or 7% Gold Bonds, 1980 provided that the nominal value of bonds does not exceed Rs.10,000/-
- For debenture issued by a public company to individual/HUF if interest does not exceed Rs.5,000 during the previous year and the same is paid by account payee cheque.
- On government security (exception interest on 8% saving (taxable) bonds, 2003 or 7.75% saving (taxable) bonds 2018, if interest is more than 10,000 during the previous year then TDS applicable.