- 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.
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