{"id":7896,"date":"2025-07-16T06:47:59","date_gmt":"2025-07-16T06:47:59","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7896"},"modified":"2025-07-16T06:48:01","modified_gmt":"2025-07-16T06:48:01","slug":"section-193","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/section-193\/","title":{"rendered":"Section 193"},"content":{"rendered":"<p>Section <strong>193<\/strong> of the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax-act\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Income Tax Act<\/a> mandates <strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>TDS<\/a> (<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Tax<\/a> Deducted at Source)<\/strong> on <strong>interest earned from securities<\/strong>, such as <strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/government-bonds\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">government bonds<\/a>, debentures, and other listed securities<\/strong>. It ensures that tax is collected in advance on such income.<\/p>\n\n\n\n<h2 id=\"when-does-section-193-apply\" class=\"wp-block-heading\">When Does <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/section-193\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Section 193<\/a> Apply?<\/h2>\n\n\n\n<p>TDS under Section 193 applies when any <strong>resident<\/strong> receives interest on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Government securities<\/strong><\/li>\n\n\n\n<li><strong>Debentures of listed companies<\/strong><\/li>\n\n\n\n<li><strong>Corporate <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bonds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>bonds<\/a><\/strong><\/li>\n\n\n\n<li><strong>Public <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sector\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>sector<\/a> company bonds<\/strong><\/li>\n\n\n\n<li><strong>Taxable savings bonds (like 7.75%)<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 id=\"tds-rate-under-section-193\" class=\"wp-block-heading\">TDS Rate Under Section 193<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Case<\/th><th>TDS Rate<\/th><\/tr><\/thead><tbody><tr><td>With valid PAN<\/td><td>10%<\/td><\/tr><tr><td>Without PAN (or invalid PAN)<\/td><td>20%<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">TDS Rate Under Section 193<\/figcaption><\/figure>\n\n\n\n<p><strong>No surcharge or cess<\/strong> is added.<br><strong>Not applicable to NRIs<\/strong> (they fall under Section 195).<\/p>\n\n\n\n<h2 id=\"threshold-limits-for-tds\" class=\"wp-block-heading\">Threshold Limits for TDS<\/h2>\n\n\n\n<p>TDS is <strong>not deducted<\/strong> if:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Interest on debentures<\/strong> issued by listed companies &#x2264; &#x20B9;5,000 <strong>per year per person<\/strong> (and paid via A\/c Payee cheque).<\/li>\n\n\n\n<li><strong>7.75% Savings Bonds<\/strong> interest is <strong>&#x2264; &#x20B9;10,000\/year<\/strong>.<\/li>\n\n\n\n<li><strong>Government securities (like bonds)<\/strong> &#x2013; Certain ones are fully exempt.<\/li>\n<\/ul>\n\n\n\n<h3 id=\"example\" class=\"wp-block-heading\">Example<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You hold &#x20B9;1 lakh worth of <strong>listed <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/company-debentures\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">company debentures<\/a><\/strong>.<\/li>\n\n\n\n<li>Interest paid = &#x20B9;6,000<\/li>\n\n\n\n<li>Since it exceeds &#x20B9;5,000, and is not via A\/c payee cheque, <strong>TDS @10% = &#x20B9;600<\/strong> is deducted.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"exemptions-from-section-193-tds\" class=\"wp-block-heading\">Exemptions from Section 193 TDS<\/h2>\n\n\n\n<p>TDS is <strong>not deducted<\/strong> if:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The recipient submits <strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/form-15g\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Form 15G<\/a>\/15H<\/strong> (for no\/lower <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">income tax<\/a>).<\/li>\n\n\n\n<li>Securities are held by:\n<ul class=\"wp-block-list\">\n<li><strong>LIC, GIC or its subsidiaries<\/strong><\/li>\n\n\n\n<li><strong>Recognised <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/mutual-fund\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Mutual Fund<\/a>s<\/strong><\/li>\n\n\n\n<li><strong>Government bodies<\/strong><\/li>\n\n\n\n<li><strong>RBI<\/strong><\/li>\n\n\n\n<li>Institutions notified under Section 194A or specific notifications<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 id=\"key-points-summary\" class=\"wp-block-heading\">Key Points Summary<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Feature<\/th><th>Details<\/th><\/tr><\/thead><tbody><tr><td>Applies To<\/td><td>Interest on securities (resident payees)<\/td><\/tr><tr><td>TDS Rate<\/td><td>10% (with PAN)<\/td><\/tr><tr><td>No TDS Below<\/td><td>&#x20B9;5,000 (debentures), &#x20B9;10,000 (bonds)<\/td><\/tr><tr><td>Exemption Forms<\/td><td>15G \/ 15H<\/td><\/tr><tr><td>Applicable Section<\/td><td>193 (for residents only)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"why-it-matters\" class=\"wp-block-heading\">Why It Matters<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Helps you track <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/advance-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">advance tax<\/a> deducted on interest income<\/li>\n\n\n\n<li>Ensures you&#x2019;re not caught by surprise when filing returns<\/li>\n\n\n\n<li>Lets you <strong>claim TDS credit<\/strong> via <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/form-26as\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Form 26AS<\/a> or ITR<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Section 193 of the Income Tax Act mandates TDS (Tax Deducted at Source) on interest earned from securities, such as government bonds, debentures, and other listed securities. It ensures that tax is collected in advance on such income. When Does Section 193 Apply? TDS under Section 193 applies when any resident receives interest on: TDS [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7896","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7896\/revisions"}],"predecessor-version":[{"id":7897,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7896\/revisions\/7897"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}