Microlesson · 5-min read

Section 193 — TDS on Interest on Securities

# Section 193 — TDS on Interest on Securities

## Who deducts?

## Threshold

Interest > ₹10,000 p.a. (general threshold).

## Rate

10%.

## Notes

Applies to interest on Central / State Government securities, debentures of companies, etc.
TDS is not deducted from interest paid to non-residents (Sec 195 will apply instead).

Worked example

### Example 1

Example: Mr. A holds debentures of XYZ Ltd. and receives ₹25,000 interest. TDS u/s 193 @ 10% = ₹2,500.

### Example 2

Example: Interest of ₹8,000 on debentures — no TDS as it does not exceed ₹10,000.

Confusing Sec 193 (interest on securities) with Sec 194A (interest other than on securities).
Applying TDS on interest paid to non-residents under Sec 193 — for NRs, Sec 195 applies.

Reference: 193

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