TDS is required to be deducted on the payments. Hence TDS needs to be deducted on the interest other than interest on securities. Section 194A deals with the TDS on interest other than interest on securities.
This document covers
TDS is required to be deducted @ 10% on payments made to Resident Non-Corporate tax payers and Resident corporate taxpayers.
The threshold for deduction of TDS u/s 194A are as follows
|S.No||Type of Payer||Threshold|
|1||If the payer is||Rs 40,000|
Note: if the Payee is Senior Citizen, the threshold is Rs 50,000
|2||Any other person other than mentioned in Pt 1||Rs 5,000|
TDS u/s 194A needs to be deducted at the following times which ever is earlier
The due date for payment of TDS deducted u/s 194A is within 7 days from the end of the month in which deduction is made. However, for the March month, due date is April 30
Note: Deduction of TDS on interest income accrued to Minor where both the parents have deceased.
Generally, TDS is required to be deducted on the parent’s name in respect of interest accrued to minor. But when both the parents have deceased, TDS needs to be deducted on the minor PAN unless a declaration is filed that TDS has to be given to another person