# Section 194A – TDS on Interest (Other Than Securities)
## 1. Payer & Payee
- Payer: Any person, except an individual or HUF whose total sales/gross receipts/turnover did NOT exceed ₹1 crore (business) or ₹50 lakhs (profession) in the immediately preceding F.Y.
- Payee: Any Resident.
## 2. Threshold Limits
| Payer Type | General Limit | Senior Citizen Payee |
|---|---|---|
| Banking Company | > ₹50,000 p.a. | > ₹1,00,000 p.a. |
| Co-operative Society engaged in banking | > ₹50,000 p.a. | > ₹1,00,000 p.a. |
| Post Office (notified scheme) | > ₹50,000 p.a. | > ₹1,00,000 p.a. |
| Any other case | > ₹10,000 p.a. | > ₹10,000 p.a. |
## 3. Rate of TDS
- 10% (flat for resident).
## 4. Time of Deduction
- Earlier of:
- Credit of such income to payee's account, OR
- Payment.
## 5. Important Exemptions – When TDS u/s 194A is NOT Required
- Interest on Savings Bank Account in any bank/co-op.
- Interest by a firm to its partner.
- Interest on Income-tax Refund (paid to assessee).
- Interest on Zero-Coupon Bonds.
- Interest paid by one bank or co-operative bank to another bank/co-op bank.
- Interest paid by LIC/insurance companies (notified).
## Snapshot
```
Payer : Any person (Ind/HUF only if tax-audited)
Payee : Resident
Limit : Bank/Co-op/Post Office:
General > ₹50,000
Sr. Citizen > ₹1,00,000
Other cases > ₹10,000
Rate : 10% (flat)
Time : Earlier of credit or payment
Exempt : SB interest, firm→partner, IT refund interest, inter-bank, etc.
```