Section 393(1); Table [For Payment to Resident]-Interest Income

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....- Senior Citizen(b) Rs.50,000 - Other than Senior Citizen 5(iii) Interest other than interest on securities Specified person [other than persons covered under Sl. No. 5(ii)(c)] Rates in force Rs.10,000 Sl. No. 5(i) - Interest on securities This clause applies to income by way of interest on securities. The salient features are- • applicable to any person responsible for making the payment; • tax is deductible at Rates in force; and • deduction is required only where the interest exceeds Rs.10,000. Since the provision prescribes "Rates in force" instead of a fixed percentage, the applicable rate shall be determined in accordance with the Act and the releva....

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....ere the recipient is a non-resident, where applicable, the rate in force generally includes the applicable surcharge and Health & Education Cess, subject to relief available under the applicable Double Taxation Avoidance Agreement (DTAA). Note1 Branch-wise computation of threshold Note 1 applies to Sl. Nos. 5(ii) and 5(iii). Where the payer has not adopted Core Banking Solutions (CBS), and the interest relates to- • time deposits with a banking company; • time deposits with a co-operative bank; or • Deposits with a public company engaged in providing long-term finance for the construction or purchase of residential houses and eligible for deduction under section 32(e). the threshold l....

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.... No 7 Comparative Analysis: Sections 193 & 194A (Income-tax Act, 1961) vs. Section 393(1), Sl. No. 5 (Income-tax Act, 2025) Particulars Section 393(1), Sl. No. 5(i) (Income-tax Act, 2025) Section 193 (Income-tax Act, 1961) Section 393(1), Sl. No. 5(ii) (Income-tax Act, 2025) Section 194A (Income-tax Act, 1961) Section 393(1), Sl. No. 5(iii) (Income-tax Act, 2025) Nature of payment Interest on securities Interest on securities Interest other than interest on securities Interest other than interest on securities Interest other than interest on securities Person responsible to deduct tax Any person Any person Banking company, co-operative ba....