Full Course Android App - [ Ссылка ] For consultancy on International tax issues, call our experts by subscribing to one of our Plans
For more info visit - [ Ссылка ]
Contact us :-
Email - contact@sortingtax.com
Phone Number - +91-9667714335
Follow us on
Linked in - [ Ссылка ]
#Internationaltax #taxexpert #taxconsultant #taxadvice #permanentestablishment #feefortechnicalservices #DTAA #Treaty #MLI #BEPS
- TDS on Interest on Securities - Section 193 of Income Tax Act - CA Arinjay Jain
Interest on securities - SECTION 193
WHAT YOU SHOULD KNOW ?
Which Payor are liable to deduct tax u/s 193 ? Who should be the Recipient ?
Whether payment qualifies as a Interest on securities ?
Rate and Minimum Threshold for deduction of taxes
Timing of Deduction
Exemptions and Non Deduction Cases
Parties involved in transaction
Payor
Local authority, Corporation or company, including principal officer thereof - Covered U/S 193
Central or State Government - Covered U/S 193
Recipient
Resident- Covered U/S 193
Non-resident - Covered u/s 195
TIMING OF DEDUCTION
Credit - Credit to a Suspense Account/ Interest Payable Account or any other account would be considered as a credit
Payment – Cash/ Cheque / Draft any other mode
RATE OF TDS U/S 193
10% on various Payments referred in next slide
20% (if PAN is not provided by recipient) – Section 206AA
As per lower WHT certificate obtained u/s 197 (if any)
RATE OF TDS U/S 193
1. Person (other than a company) resident in India who pays interest on
(A) Any debentures or securities other than a security of the Central or State Government for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; - 10%
(B) Any debentures issued by a Company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulations) Act, 1956 and any rules made thereunder - 10%
(C) Debentures not listed on a recognised stock exchange - 10%
(D) 8% / 7.75% Savings Taxable Bonds - 10%
2. Domestic company
Any interest on securities - 10%
MEANING OF INTEREST ON SECURITIES
Interest on debentures or other securities issued for money by or on behalf of local authority, a company or a corporation established by State Central for provincial act
Interest on securities of Central or State government – Subject to certain exemptions
Which payments ARE EXEMPT FROM TAX DEDUCTION u/s 193
Section 193 excludes the following payments
Central Government notified debentures issued by specified authorities
Interest on any security issued by the Central or State Government
Securities specified in proviso to Section 193
Interest payable on a listed Security issued by a company in dematerialized form as per SCRA
Which payments DO NOT REQUIRE TAX DEDUCTION U/S 193
Section 193 exempts the following payments
Interest paid or payable by a widely held Company on listed / unlisted debentures to a resident individual / HUF by an account pay cheque not exceeding Rs. 5,000
Interest paid or payable by a widely held Company on listed / unlisted debentures to a resident individual / HUF by an account pay cheque not exceeding Rs. 5,000
Interest payable on a listed Company Security in dematerialized form
Interest on 8% Saving (Taxable) Bond 2003 / or 7.75%Savings (Taxable) Bonds 2018, issued by central government it to the extent of Rs. Of 10000
Certain other issues
Cumulative Debentures or Bond - Deduct tax at the time of credit not until maturity
Payee declaration for non deduction with PAN? - Non-company recipient in Form 15G, provided aggregate not likely to exceed maximum amount not chargeable to tax (other than individuals aged more than 60 years at any time during the year giving declaration in Form 15H
Deep Discount Bond - Deduct TDS only in the year of redemption
