Summary of TAX/TDS on Interest on bonds:
| Category of Shareholder | Rate of TDS |
|---|---|
| (i) Resident individual shareholder receiving dividend up to Rupees.10,000/- (during a financial year) or in case where duly signed Form 15G / Form 15H (as applicable) along with self-attested copy of the PAN card is submitted by the shareholder. | Nil |
| (ii) Resident shareholder (not covered under (i) above) who is having a valid, operative PAN as per section 139AA having a valid PAN. | 10% |
| (iii) Resident shareholder (not covered under (i) above) not having a valid PAN or having an in operative PAN as per section 139AA. | 20% |
| (iv) A resident shareholder who submits a certificate under Section 197 or non-resident shareholder who submits a certificate under Section 195/197 of the Act, (including those mentioned in Circular No. 18/2017 issued by CBDT). | As per the directions of the certificate, along with copy of statement-cum declaration in Form no.1 |
| Non-Resident Other than Company | 30% |
| Non-Resident Company | 40% |
| Non-Resident Covered Under Section 194 LC and LD | 5% |
Notes
A. Permanent Account Number is mandatory to be registered for each Folio/DP id-Client Id. In absence of a valid PAN, tax will be deducted at a higher rate of 20% as per Section 206AA of the Act and tax credit certificate cannot be generated.
B. As per Section 139AA of the Income Tax Act, every person who has been allotted a PAN and who is eligible to obtain AADHAR, shall be required to link the PAN with AADHAR. In case of failure to comply this, the PAN allotted shall be deemed to be invalid / inoperative and tax shall be deducted at the rate of 20% as per the provisions of section 206AA of the Act.