What is Section 193?
TDS on interest on securities is deducted under section 193 of the Income Tax Act. Interest on securities means the interest on:
Debentures or other securities issued by or on behalf of a local authority or a company or a corporation [established by a Central, State or Provincial Act]
Any security of the Central Government or a State Government
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Who shall Deduct TDS under section 193?
- The person who is responsible for paying interest on securities to a resident shall deduct the tax component from the interest on securities.
- TDS mechanism covers Payments made to non-residents but tax in such a case is to be deducted as per section 195.
What is rate of TDS under Section 193 ?
The rate of TDS under Section 193 is 10% from the sum of interest.
If the payee does not furnish his Permanent Account Number (PAN), then the payer has to deduct tax at the higher of the following:
Rate specified in the relevant provision of the Income-tax Act.
The rate or rates in force, i.e., the rate prescribed in the Finance Act.
At the rate of 20%.
What is the time limit for depositing TDS u/s 193 ?
Particulars | Time limit to deposit TDS |
If the amount is paid or credited in the month other than March | Within 7 days from the end of the month is which deduction is made |
If the amount is paid or credited in the month of March | On or before 30th April |
What is the due dates for TDS returns u/s 193 ?
They shall file quarterly returns in Form 26Q within the following due dates:
Particulars | Due Date |
April - June | 31st July |
July - September | 31st October |
October-December | 31st January |
January - March | 31st May |
What is the due dates for issuing of TDS certificate u/s 193 ?
Deductor shall issue a TDS Certificate to the deductee in Form 16A for TDS deducted on income from horse races u/s 193
Particulars | Due Date |
April - June | 15th Aug |
July - September | 15th November |
October-December | 15th February |
January - March | 15th June |
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What is the Penalty on Late Remittance of TDS u/s 193 ?
Penalty u/s 201(1A) for late deduction/late payment of TDS
Late Deduction: If TDS has not been deducted then in that case interest will be levied @1% per month or part of a month on the amount of TDS from the date on which tax was deductible to the date of actual deduction
Late Payment: If TDS has been deducted but not deposited to the government in such case interest will be charged @1.5% per month or part of a month on the amount of TDS from the date on which TDS was deducted to the date on which TDS was deposited.
