Summary of TAX/TDS on Interest on bonds:
Category of Holder | Rate of TDS |
---|---|
Resident individual Holder receiving Interest on Bonds up to Rs.5,000/- (during a financial year) or in case where duly signed Form 15G / Form 15H (as applicable) along with self-attested copy of the PAN card is submitted by the Holder. | Nil |
Resident Holder (not covered under (i) above) who is not a "specified person" as per section 206AB having a valid PAN. | 10% |
Non-Resident Other than Company | 30% |
Non-Resident Company | 40% |
Non-Resident Covered Under Section 194 LC and LD | 5% |
Non-resident Holder who is not a "specified person" as per section 206AB. | 20% (plus applicable surcharge and health and education cess) |
Non-resident Holder who is a "specified person" as per section 206AB. | 40% (plus applicable surcharge and health and education cess) |
A resident Holder who submits a certificate under Section 197 or non-resident Holder who submits a certificate under Section 195/197 of the Act. | As per the directions of the certificate |
Notes
A. Permanent Account Number is mandatory to be registered for each Folio/DP id-Client Id. In absence of a valid PAN, tax will be deducted at a higher rate of 20% as per Section 206AA of the Act and tax credit certificate cannot be generated.
B. If Person is "specified person" as per section 206AB then TDS
Rate is higher of :
-Twice the rate specified in the
relevant provisions of the Income-tax Act; or
-Twice
the rate or rates in force; or
-the rate of 5%;