Section 193 – TDS on Interest on Securities

# Section 193 – TDS on Interest on Securities

## 1. Applicability

• Any person paying to a resident any income by way of interest on securities.
• 'Securities' include debentures, government securities, and notified bonds.

## 2. Threshold Limit

• Aggregate interest credited/paid in the F.Y. exceeds ₹10,000.

## 3. Rate

• 10% (no SC/HEC for resident).

## 4. Time of Deduction

• Earlier of:
• Credit to the account of the payee (including suspense account), OR
• Payment.

## 5. Notable Exemptions (TDS NOT required on interest payable on)

• National Development Bonds.
• 7-Year National Saving Certificates.
• Debentures issued by certain PSUs / Co-operative societies (notified).
• Any security of the Central/State Government (with conditions).
• Interest payable to LIC, GIC and other notified insurance entities.

## Snapshot

```

Payer : Any person

Payee : Resident

Limit : Interest > ₹10,000 p.a.

Rate : 10% (flat)

Time : Earlier of credit or payment

```