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What is the concept of Tax Deducted at Source (TDS) in respect of interest on ICICI bank Bonds?

As per the current provisions of Income-tax Act, 1961, (Act) , Tax Deduction at Source (TDS) is deducted on interest on Bonds where interest paid or payable to a resident individual / HUF bondholder exceeds Rs.5,000/- in a financial year. In case of all non-resident bondholders, tax will be deducted at source on interest at the rates as per prevailing Income-tax Act, 1961, or Double Taxation Avoidance Agreement, whichever is lower, subject to submission of relevant documents and fulfillment of conditions as may be amended from time to time. Certain specified entities whose income is unconditionally exempt under section 10 of the Act and who are statutorily not required to file return of income as per section 139 of the Act, CBDT has vide Circular no.4/2002 dated July 16, 2002, granted blanket TDS exemption. Alternatively, valid certificate under section 197 issued by your Assessing Officer can be submitted within the prescribed time frame for availing the benefit of lower or nil rate of TDS.