Whether TDS is required to be deducted on accrued interest paid by a person buying G-sec, PSU Bonds?

Question

Whe ther TDS as per Indian Income Tax Act is deductible on payment of accrued interest by the buyer to the seller of G-sec, PSU Bonds ? Please indicate relevant section of the IT Act. Accrued interest on securities till the transaction date is paid by the buyer to the previous holder (seller) in addition to the sale consideration.

Whe ther TDS as per Indian Income Tax Act is deductible on payment of accrued interest by the buyer to the seller of G-sec, Coprorate/PSU Bonds ? Please indicate relevant section of the IT Act. Accrued interest on securities till the transaction date is paid by the buyer to the previous holder (seller) in addition to the sale consideration. Between two interest payment dates the securities chage hands a number of times and accrued interests are paid/received between the parties. Whether TDS is required to be deducted at the time of each trading occassion?

Answer 1

The interest on PSU or G-Sec will be paid to the individuals who's name appears in their records on record date fixed for payment of Interest. Previous owners will not come into picture. The TDS will be deducted on the interest (If it is more than Rs.5,000/- in a financial year) from the individual who receives it.

In case if the receiver of the interest happens to be other than individuals, then the limit of Rs.5,000 in financial year will not apply and the TDS will be deducted even if he payment is less than Rs.5,000

Answer 2

Accrued interest on securities till the transaction date is DEEMED TO HAVE BEEN PAID by the buyer to the previous holder (seller) in and is included in sale consideration. The tax liability is also simultaneously transferred. TDS is only deducted when the record date of payment of interest comes and naturally its impact will be on the person whose name appears in records on that particular date.
TDS is not deducted on each transfer.

Answer 3

TDS on interest u/s 194 A if the interest amount exceeds 5000/- in a year the tds has to deducted at 10.2%. if you have no other income than you can give form 15 g for person below 65 years and form 15h for person 65 years onwards

Answer 4

If the fee paid is an earnings for the agent accruing/springing up for the centers/sales made/presented in India, then according to the tax rules you may desire to deduct tax. even with the shown fact that, if the fee is paid for earnings springing up/accruing for the centers/sales made/presented out of the country, then you certainly do no longer could desire to.