Highlights of Section 194A: Income by way of interest other than "Interest on securities"

• Applicable to individuals and Hindu Undivided Families (HUFs).
• TDS rate is 10% and 20% if fails to furnish the PAN.
• TDS is applicable only if individual or HUF's sales, receipts, or turnover exceed Rs. 1 crore for business and Rs. 50 lakhs for profession in the previous financial year.
• Payer responsible for depositing TDS to government account.
• Recipient can claim credit for TDS in their tax returns.

Exemptions

• No TDS is required if the total interest earned in a financial year is less than Rs. 5,000 (Rs. 50,000 for senior citizens). Here,  for Banking Co., Co-operative Society engaged in banking business, Post Office -threshold limit is 40,000 and 50,000 if Payee is Senior Citizen.