CAknowledge.com bell-icon
  • Home
  • Celebrity
  • Athletes
  • Business
  • Politicians
  • Articles
  • Stocks
  • News
CS
CMA
CA Final
IPCC
Income Tax
Sales Tax
CS Professional
CS Executive
CS Foundation
CMA Final
CMA Inter
CMA Foundation
CPT
Jobs
Tally
Stock market
Investment
Banking
SEBI
FRM
Accounting
Interview
GST
Insurance
EPF & UAN
Economy
Company Law
Judiciary
Indirect Tax
Money
Word Excel Formats
News
Finance
Training
NPO
Auto
HR Formats
Key Difference
Net Wealth
6hip
Featured
Taxation
Exam Form
CA Foundation
Audit
Question Papers
UGC NET
Syllabus
CBSE
Career
IAS Interview
Firms
CA Firms
CFA
Hindi
Central Government Scheme
Rajasthan Govt Scheme
Press Release
CS Firms
CMA Firms
Technology
FAQ
GST Registration
GST Rates
CGST
GST Return
GST Sections
Notifications
GST in Hindi
SGST
E-Way Bill
Goods and Service Tax
IGST
UTGST
Medical
CSEET
Result
Cryptocurrency
Health
Diabetes
  1. Home >
  2. Articles >
  3. GST
  4.   >
  5. Tds Under Section 194a

TDS under Section 194A - Interest other than interest on securities

TDS under Section 194A. Interest other than interest on securities [Section 194A]. Check out What is the meaning of Interest ??, Exemption limit.

CA Yash Shah

Last Updated : September 18, 2023

whatsapp-color google-news
TDS under Section 194A - Interest other than interest on securities
Content in this Article

TDS under Section 194A. The topic relating to any TDS section is very much famous and on-going because there can be various complexity regarding the issues faced by individuals in normal business. So in this article I would make you understand the concept of Section 194A which is relating to the TDS which is to be deducted in case of Interest other than Interest on Securities. Now you can scroll down below n check more details regarding "TDS under Section 194A"

TDS under Section 194A

Interest other than interest on securities [Section 194A]

  • Applies only to interest paid or credited to residents
  • Not applicable to such individuals or HUF whose sale/receipts from business/profession does not exceed 1 crore and 50 lakh u/s 44AB in the immediately preceding FY
  • TDS should be deducted at the time of credit or payment, whichever is earlier
  • In case of banks: TDS shall be deducted on accrual of interest on time deposits.
  • TDS @ 10% (domestic company and resident non-corporate assessee)

Non-applicability:

  • Interest paid/credited during the FY =< 5,000
  • In case of time deposit (FD+RD), above limit will be 10,000 and 50,000 in case of resident senior citizen
  • Above limit applicable on total basis and not branch wise, where CBS system is followed
  • Interest by a firm to any of its partners
  • Interest by a co-operative society to its members or other co-operative society
  • Interest on deposits under any scheme framed and notified by the CG
  • Interest on deposits with credit society
  • Interest paid by CG under IT Act, Wealth tax act, Gift tax act etc.
  • Interest paid to:
    • Companies/societies engaged in banking business
    • Financial corporation under CG, SG
    • LIC, companies/societies in insurance business
    • UTI, Notified Institutions (National Skill Development)
    • Interest on compensation by Motor Accidents Claims Tribunal (Credited). When paid =< 50000
    • Interest in zero coupon bond after 01.06.2005
  • On FD made in the name of Registrar General of the Court till the matter is decided by the Court

In case of minor, where both the parents have deceased, TDS should be deducted and reported against PAN of the minor child unless a declaration is filed that credit for tax deducted has to be given to another person

TDS in case of deposits under the Capital Gains Accounts Scheme, 1988 where the depositor has deceased:

  • Upto the period of death: against PAN of the depositor
  • After death of the depositor: against PAN of the legal heir, unless declaration filed for another person

What is the meaning of Interest ??

The word interest in this section would include the following:

  • Interest on Loans
  • Interests on Public Deposits
  • Interest on Inter-Corporate Loans
  • Interest on Commission Agent payment

Must Read - Don’t worry – No TDS on Post Office Recurring Deposit

Advertisement

The word interest in this section would not include the following:

  • Interest paid by a Firm to its partners.
  • Interest paid by Central Government under the provisions of the Income Tax Act.
  • Interest paid by a co-operative society to its members.
  • Interest paid by one banking company to other for the deposits made.
  • Interest paid by banking company to any institution which is notified by Central government such as LIC, UTI, etc.
  • Interest paid on Zero coupon bonds.
  • Interest paid to supplier for the late payment of the outstanding amount.
  • Discounting charges for the bill discounted or for the export purpose will not to defined as interest and therefore not liable for TDS.
  • Interest paid or credited on the schemes which are been notified by the Central Government.
  • Interest on the Deposits for the deposits with the primary agricultural society or any co-operative land development bank or any co-operative land mortgage bank.

Must Read - TDS on Employees Provident fund withdrawal

Exemption limit up to which no TDS:

The exemption limit for not deducting the tax on interest is Rs. 10,000 in case of Banking Companies and Rs. 5,000 in any other cases.

Rate of Deduction:

The Rate of Deduction under this Act is 10% in normal case and if any detail error such as Not having PAN then flat rate of 20% should be applied.

Deposit of the TDS so collected:

The TDS so credited should be paid on or before the seventh of the next month in which the TDS was credited. In case of month of March the TDS needs to be deposited within 30th of the month of April.

Must Read - Section 194c

Non Deduction in certain cases:

Where the deductee is providing the deductor the Form 15G/15H (As applicable), then the deductor will not be liable for deducting the Tax.

Issue of TDS Certificates:

The issue of TDS Certificates would be 15 days from the due date of filing of returns, i.e. in 1st quarter, the return is filed on 15th of July, then the due date for TDS Certificates would be 30th July.

TDS returns:

The deductor deducting the tax and depositing the same needs to make the details available to the government by furnishing returns under the law and submit the same within time limits prescribed in law for each kind of person.

Comments & Disclaimer:

Please give your opinion and comments, any suggestions for improvement in the article in mail inbox at yashshah299@gmail.com. Suggestions from everyone are appreciated.

Share with friends

Share on Facebook Twitter WhatsApp
Latest Articles

Vacation Leave Letter Format, Vacation Leave Application 2023

A Comprehensive Guide to Zero Depreciation Car Insurance and Claims

How to Utilise the Home Loan Balance Transfer EMI Calculator?

Official Leave Letter Format, Leave Application Format word

Resignation Letter Format, Sample, Template Format in doc

Job Application Letter Format, Job Letter Format, Job Resume

GST Council: It's roles, Powers, Functions, Members, Quorum

Marriage Leave Letter Format, Marriage Leave Application Format

caknowledge.com
Follow us on
facebook twitter instagram linkedin
Have a query?
Support
Useful Links
SiteMap
Privacy Policy
About CAKnowledge
Contact Us
Advertise With Us
POST TYPES
Celebrity
Net Wealth
Hollywood
YouTuber
Singer
Actors
Bollywood
Directors
Journalist
Comedian
Authors
Celebrity Chefs
Models
Richest DJs
Rappers
Lawyers
Music Artist
Women
History
TV Personality
Sheikh
Actress
Athletes
Sports
Cricketer
Tennis Players
Hockey
Football Player
Olympians
Wrestlers
Baseball Players
Kabaddi
Race Car Drivers
Golfers
Badminton
Boxers
NBA Players
NFL Players
Racing Drivers
Business
Corporate
CEOs
Designers
Startup
Entreprenuer
Politicians
Congress
Presidents
BJP
Royals
Republicans
Democrats
Politics
Stocks
Companies
TV Personality
  • Tucker Carlson Net Worth
  • Emily Compagno Net Worth
  • Chuck Todd Net Worth
  • Kris Jenner Net Worth
  • Anderson Cooper Net Worth
Politician
  • Nancy Pelosi Net Worth
  • Hunter Biden Net Worth
  • Justin Trudeau Net Worth
  • AOC Net Worth
  • Joe Biden Net Worth
  • Ron DeSantis Net Worth
  • Zelensky Net Worth
  • Vladimir Putin Net Worth
  • Donald Trump Net Worth
  • Jen Psaki Net Worth
  • Kevin McCarthy Net Worth
  • Elizabeth Warren Net Worth
History
  • Hitler Net Worth
  • JFK Net Worth
  • Napoleon Net Worth
  • Pablo Escobar Net Worth
  • Genghis Khan Net Worth
  • Mansa Musa Net Worth
  • Rothschild Family Net Worth
  • Alexander the Great Net Worth
YouTuber
  • Blippi Net Worth
  • Jake Paul Net Worth
  • Logan Paul Net Worth
  • MrBeast Net Worth
  • PewDiePie Net Worth
  • Adin Ross Net Worth
  • KSI Net Worth
  • Kai Cenat Net Worth
Rappers
  • Jay-Z Net Worth
  • Sean Combs Net Worth
  • Dr. Dre Net Worth
  • Kanye West Net Worth
  • Eminem Net Worth
  • Drake Net Worth
  • Master P Net Worth
  • Ice Cube Net Worth
  • Snoop Dogg Net Worth
  • Nicki Minaj Net Worth
  • Travis Scott Net Worth
  • Cardi B Net Worth
  • 50 Cent Net Worth
Boxers
  • Floyd Mayweather Net Worth
  • Andrew Tate Net Worth
  • Bruce Lee Net Worth
  • Tristan Tate Net Worth
  • Mike Tyson Net Worth
  • George Foreman Net Worth
  • Tyson Fury Net Worth
  • Miesha Tate Net Worth
Actress
  • Kim Kardashian Net Worth
  • Amber Heard Net Worth
  • Jami Gertz Net Worth
  • Reese Witherspoon Net Worth
  • Jessica Alba Net Worth
  • Jennifer Aniston Net Worth
  • Scarlett Johansson Net Worth
  • Jennifer Lawrence Net Worth
  • Angelina Jolie Net Worth
Athletes
  • Cristiano Ronaldo Net Worth
  • LeBron James Net Worth
  • Lionel Messi Net Worth
  • Conor McGregor Net Worth
Singer
  • Rihanna Net Worth
  • Madonna Net Worth
  • Celine Dion Net Worth
  • Taylor Swift Net Worth
  • Beyonce Net Worth
  • Shakira Net Worth
  • Jennifer Lopez Net Worth
  • Justin Bieber Net Worth
  • R. Kelly Net Worth
Cricketer
  • Virat Kohli Net Worth
  • MS Dhoni Net Worth
  • Sachin Tendulkar Net Worth
Business Men
  • Elon Musk Net Worth
  • Gautam Adani Net Worth
  • Jeff Bezos Net Worth
  • Warren Buffett Net Worth
  • Mukesh Ambani Net Worth
  • Mark Zuckerberg Net Worth
  • Rob Walton Net Worth
  • Jack Ma Net Worth
Actor
  • The Rock Dwayne Johnson Net Worth
  • Jason Statham Net Worth
  • Tyler Perry Net Worth
  • Tom Cruise Net Worth
  • Eddie Murphy Net Worth
  • George Clooney Net Worth
  • Adam Sandler Net Worth
  • Brad Pitt Net Worth
  • Will Smith Net Worth
  • Vin Diesel Net Worth
  • Keanu Reeves Net Worth
  • Robert Downey Jr. Net Worth
  • Ryan Reynolds Net Worth
  • Leonardo DiCaprio Net Worth
  • Arnold Schwarzenegger Net Worth
families
  • Rothschild Family Net Worth
  • Walton family Net Worth
  • The Bush Family Net Worth
  • Rockefeller Net Worth
NBA Players
  • Michael Jordan Net Worth
  • LeBron James Net Worth
  • Kobe Bryant Net Worth
  • Magic Johnson Net Worth
  • Chris Paul Net Worth
  • Stephen Curry Net Worth
NFL Players
  • Fran Tarkenton Net Worth
  • Tom Brady Net Worth
  • Aaron Rodgers Net Worth
  • Jim Brown Net Worth

© 2023 Caknowledge.com • ❤️ From Your Heart

The materials and information provided on this website are for reference purposes only.