Section 194a of income tax act 1961

It is, therefore, proposed to amend the provisions of section 194a of the income tax act, 1961 to provide that deduction of tax under section 194a of the act from interest payment on the compensation amount awarded by the motor accident claim tribunal compensation shall be made only at the time of payment, if the amount of such payment or. Section 194a amendment in provisions related to tds on. Section 194a tds on interest income tax act 1961 in hindi duration. As per section 194a, tds on interest other than interest on securities is required to be deducted by any person other than individual or huf at. Tds is to be deducted at 10% on the amount of interest credited under section 194a. No tds on interest income up to rs 50,000 for senior citizens the. Tds on interest other interest on securities under section. Tax is to be deducted under section 194a, if interest other than interest on securities is paid to a resident. Additionally, it had amended the section 194a of the income tax act wherein it said no tax deduction at source shall be made in the case of. Section 194a of the income tax act deals with tds with respect to interests on loans, advances and fixed deposits paid to resident person. Section 194a of income tax act tds on interest us 194a.

The present article helps to understand the provisions attached with section 194a of the income tax act, 1961. The bill has amended section 194a so as to raise the threshold for deduction of tax at source on interest income for senior citizens from rs. This section of income tax, 1961 contains the provisions relating to deduction of tds on interest other than interest on securities. It lays down all the rules and regulations in respect of direct taxes in india. What is section 194 section 194a under income tax act. Section 194a of the income tax act deals with the provisions relating to deduction of tds on interest other than interest on securities. It is deducted either at the time of paymentvia cash, cheque. Section 194a of income tax act, tds under section 194a. Section 194a of the income tax act, 1961 tds on interest. Thus, the provisions of section 194a are not applicable in case of payment of interest to a nonresident. Section 194a of the income tax act, 1961 tds on interest other than interest on securities. What is section 194 and section 194a under income tax act. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890.

File your income tax return with confidence and ease. Interest on securities are not covered under section 194a. Section 194a of income tax act contains provisions regarding tds to be deducted on interest payable like interest on fixed deposit, interest on. Section 194a tds on interest other than interest on securities. Total income does not exceed the exemption limit i. The article presented to show the tds provisions contained under section 194a of the income tax act, 1961 relating to the tds deduction on interest other than interest on securities. Article discusses about tax deducted at source from interest other than interest on securities section 194a, from fees for professional servicestechnical servicesroyalty section 194j and from interest on securities section 193 for quick and efficient collection of taxes, the income tax law has incorporated a system of deduction of tax. Interest like interest paid on an unsecured loan, interest paid by banks on fixed deposits, interest paid on loans and advances, etc. Income tax of india, 1961 is the governing legal act in respect of levy, collection, administration and recovery of direct taxes in india. Tax on total income of the previous year py is nil. Section 194a in the income tax act, 1995 indian kanoon. Section 194a tds on interest the complete guide taxadda.