The 60-second version
Section 194F requires 10% TDS on interest on securities (debentures, bonds) when paid to resident — issuer or custodian deducts at credit.
194F is interest on securities — not equity dividend
Section 194F applies when interest is paid on securities such as debentures and bonds — 10% TDS deducted by payer.
Distinct from Section 194 dividend on shares and Section 194A bank FD interest.
NCD lane: bonds and NCD guide.
Interest TDS matrix
| Section | Rate | Instrument |
|---|---|---|
| 194F | 10% | Debenture/bond interest |
| 194A | 10% | Bank FD interest |
| 194 | 10%/20% | Equity dividend |
| 193 | 10% | Government securities |
194F sequence
Interest credit
Issuer pays interest.
10% TDS
Deducted at source.
26AS
Verify credit.
ITR
Declare interest income.
Form 67
If foreign bond overlap.
Flow
194F kit
- Interest advice.
- TDS cert.
- 26AS.
- PAN.
- ITR ACK.
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No PAN
20% TDS per Section 206AA if PAN not furnished to issuer.
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vs 194A?
194A bank interest; 194F securities interest.
54EC bonds?
Interest still taxable — capital gain may be exempt on redemption.
NRI holder?
Resident after return — 194F applies.
Form 15G?
If total income below exemption before interest credit.
Foreign bonds?
Not 194F — Schedule FA foreign income.
TDS refund?
If no taxable income — claim in ITR.
Your tax year is already running.
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