Section 194LD - Income by way of interest on certain bonds and government securities - Income Tax - Ready Reckoner - Income Tax

Section 194LD : Income by way of Interest on certain Bonds and Government Securities The provision of this section inserted with effect from 01.06.2013. Any person who is responsible for paying to a person being a Foreign Institutional Investor (FII) or a Qualified Foreign Investor (QFI), any income by way of interest payable (a) on or after 1-6-2013 but before 1-7-2023 in respect of investment made by the payee in- (i) a rupee denominated bond of an Indian company or (ii) a Government security. (b) on or after 1-4-2020 but before 1-7-2023 in respect of investment made by the payee in municipal debt securities Time of Deduction At the time of credit or payment, whichever is earlier. Rate of TDS 5% Provided that the rate of interest in respect of bond referred to in clause (i) shall not exceed the rate as may be notified by the Central Government in this behalf.