← All questions · Tax & TDS · Answered 2026-09-04
How does TDS apply to listed NCD interest in India after the 2023 changes?
Interest on bonds and NCDs is generally taxed as interest on securities under Section 193 of the Income Tax Act, not Section 194A. After 2023 changes, do not rely on older guides that assume a broad listed-demat TDS exemption still applies unchanged — check the current circulars and thresholds. Form 15G/15H may help eligible residents avoid TDS where conditions are met. This is educational only; confirm with a chartered accountant for your facts.
Educational answer only — not investment advice or a recommendation to buy, sell, or hold any security. Rules and market data change; verify against primary sources (RBI, SEBI, issuer documents, rating agencies).
How does TDS apply to listed NCD interest in India after the 2023 changes?
Interest on bonds and NCDs is generally taxed as interest on securities under Section 193 of the Income Tax Act, not Section 194A. After 2023 changes, do not rely on older guides that assume a broad listed-demat TDS exemption still applies unchanged — check the current circulars and thresholds. Form 15G/15H may help eligible residents avoid TDS where conditions are met. This is educational only; confirm with a chartered accountant for your facts.