The 60-second version
Section 194LD requires 5% TDS on interest paid to resident on rupee-denominated listed infrastructure bonds — distinct from Section 194LC foreign currency borrowing lane.
194LD is INR listed infra bond — 194LC is FC borrowing
Section 194LD applies when interest is paid on rupee-denominated listed infrastructure bonds to a resident holder — issuer deducts 5% TDS at coupon payment.
Before return you may have seen higher NRI TDS on bond interest — after KYC redesignation to resident, payer switches to 194LD at 5%.
FC lane: Section 194LC guide for foreign currency borrowing interest.
Infrastructure bond TDS matrix
| Section | Rate | Instrument |
|---|---|---|
| 194LD | 5% | INR listed infra bond |
| 194LC | 5% | FC borrowing by Indian co. |
| 194F | 10% | Debenture interest |
| 193 | 10% | Government securities |
194LD sequence
KYC resident
Bond folio marked resident.
Coupon due
Issuer declares interest.
5% TDS
Deducted at source.
26AS
Verify issuer TAN credit.
ITR
Declare interest under other sources.
Flow
194LD kit
- Interest advice.
- TDS cert.
- 26AS.
- PAN.
- ITR ACK.
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vs 194LC
194LD is rupee listed infrastructure bond — 194LC is foreign currency borrowing by Indian company.
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vs 194LC?
194LD INR listed infra bond; 194LC FC borrowing by Indian company.
Unlisted NCD?
Section 194F 10% debenture lane — not 194LD.
RNOR?
Indian bond interest taxed from resident date.
Form 15G?
If total income below exemption before bond credit.
Foreign bond?
Schedule FA — not 194LD.
TDS refund?
Claim in ITR if tax due below TDS.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.