TDS needs to be deducted on the Payment of Interest on Securities by company u/s 193. Interest on Securities includes the following: 

  • Any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

  •  Any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

  • Any security of the Central or State Government; [i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]

  • Interest on any other security

TDS is deducted @ 10% on payment exceeding Rs. 10,000. If PAN of the payee/ deductee is not available then TDS is deducted @ 20%. TDS needs to be deposited using Challan No. 281 and Form 26Q needs to be filed by the Payer/ Deductor.