Tds on interest on securities paid to banks

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Ankit Aggrawal (Querist)
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19 October 2012 Our Company issued debentures to scheduled banks and paying interest thereon. Whether we have to deduct TDS on this interest U/s 193 of IT Act.

Sunny Sonwal

Sunny Sonwal (Expert)
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19 October 2012 yes, You can deduct TDS.

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CA BHUVNESH S.VILAYATRANI

CA BHUVNESH S.VILAYATRANI (Expert)
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19 October 2012 Section 193 specifies that any Person responsible for paying any Interest on Securities to a Resident is required to Deduct the TDS for interest amount above 5000/except certain exemptions including for any listed Demat Security and also when Interest is paid to a Resident Individual or HUF where the Debentures are issued by a Company in which the Public is substantially interested and interest amount does not exceed Rs.2500(Rs.5000 w.e.f 01/07/2012).In the light of above,TDS in the above case will be required to be Deducted.Regards

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