What is the TDS rate and threshold on interest (other than securities) under Section 194A?
Category
Rates & sections
Answered by
A CA firm
Bottom line
10%, with the threshold depending on payer and payee — ₹1,00,000 for senior citizens on bank interest, ₹50,000 for others on bank/co-op/post-office interest, and ₹10,000 for other interest.Section 194A applies to interest other than interest on securities — typically bank/co-operative/post-office deposits and loans. The rate is 10%.
From FY 2025-26 the thresholds were raised: ₹1,00,000 for senior citizens (bank/co-op/post-office interest), ₹50,000 for others on such interest, and ₹10,000 for interest from other payers. A nil-tax depositor can file Form 121 (the merged 15G/15H) to avoid deduction.
General information for FY 2026-27 under the Income-tax Act 2025, not advice on your specific case. Verify against the latest law or ask a CA before acting.