Summary of TAX/TDS on Interest on bonds:
| Category of Shareholder | Rate of TDS |
|---|---|
| (i) Resident individual shareholder receiving dividend up to ₹10,000 during a tax year from the company, paid otherwise than in cash; or an eligible resident individual furnishing a duly signed Form 121 (erstwhile Form 15G/15H) under Section 393(6), along with valid PAN details, subject to prescribed conditions. | Nil |
| (ii) Resident shareholder not covered under (i) above, having a valid and operative PAN, under Section 393(1) [Table Sl. No. 7]. | 10% |
| (iii) Resident shareholder not covered under (i) above, not having a valid PAN or having an inoperative PAN under Section 262(6). | 20% |
| (iv) Resident or non-resident shareholder furnishing a valid lower/nil TDS certificate under Section 395(1) (erstwhile Section 197). | As per certificate |
| (v) Non-resident shareholder other than a company, under Section 393(2) [Table Sl. No. 17], excluding specified concessional-rate categories. | 20% or beneficial DTAA rate |
| (vi) Non-resident company receiving dividend under Section 393(2) [Table Sl. No. 17], excluding specified concessional-rate categories. | 20% or beneficial DTAA rate |
| (vii) Non-resident shareholder receiving dividend from a unit in an International Financial Services Centre (IFSC), under Section 393(2) [Table Sl. No. 17]. | 10% or beneficial DTAA rate |
| (viii) Non-resident shareholder receiving dividend on qualifying Global Depository Receipts (GDRs) under Section 393(2) [Table Sl. No. 13], read with Section 209. | 10% |
| (ix) Specified exempt shareholders, including LIC, GIC, other qualifying insurance companies and eligible notified entities, under Section 393(4) [Table Sl. No. 10], subject to prescribed conditions. | Nil |
Notes
A.PAN & Aadhaar Compliance: Shareholders must ensure that their PAN is valid, operative and duly linked with Aadhaar, wherever applicable. Otherwise, higher TDS of 20% may apply under Section 397(2) of the Income-tax Act, 2025, subject to prescribed exceptions.
B. Non-Resident Shareholders: Applicable surcharge and cess shall be levied wherever applicable. Beneficial DTAA rates may be availed upon submission of a valid Tax Residency Certificate (TRC), Form 41 (erstwhile Form 10F) and other prescribed documents.