This is a gentle reminder for those who have invested sizeable money in corporate bonds…As of now there was no TDS on interest credits if the bonds were held in demat form (however interest income is taxed at slab rates). this is set to change from FY 23-24. In this year’s budget, they have done away with the existing clause (ix) of proviso to Sec. 193 & TDS will now be deducted (if it crosses the Rs5000 p.a threshold),
Interestingly I have bond holdings across tranches in several companies but only L&T Finance has bothered to send an email through its RTA with the reminder & deets. So if anyone is eligible to fill up 15G/15H then they can fill up the forms & claim exemption. But pls do not fill up the forms to save on petty TDS if you are ineligible… you will only complicate matters for yourself & incur the taxman’s wrath.
btw what’s with the low Rs5000 p.a interest threshold for TDS on company FDs & corporate NCDs… I mean even for bank FD interest they had to hike it to Rs40000 p.a (from Rs10000 p.a) per bank threshold in 2019 & this Rs 5000 threshold has remained constant since dadaji ka zamana. And its not like it is not getting taxed. It will be eventually taxed at slab rate anyway while filing returns.
P.S.:They are tightening the noose every single place. Remember how there was no TDS on interest in FDs from co-op banks if you held co-op bank shares (again it was taxed at slab rates) ? They did away with that loophole in 2015… The post office investments were not visible anywhere & I know of a lot of ppl who would earlier not reveal it entirely in their ITR. But the party ended last March. Similarly for these corporate bond investments. Now they will show up in 26AS, AIS/ TIS… Make sure you file your returns with full disclosure. Purane din chale gaye. Many ppl have suddenly recd notices this month for FY2019 & even earlier…