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Tax year 2026-27

Section 393(1) Sl. No. 5 TDS: interest

Earlier Section 194A · Codes 1020–1022

From 1 April 2026, TDS on interest other than interest on securities is deducted under Section 393(1), Table Sl. No. 5, of the Income-tax Act, 2025. It was earlier deducted under Section 194A of the Income-tax Act, 1961.

TDS calculator: Section 393(1) Sl. No. 5

Section 393(1) Sl. No. 5 at a glance

PaymentNew sectionCodeRateThresholdOld section
Interest from a bank, co-operative bank or post office, to a senior citizen393(1) Sl. No. 5(ii).D(a)102010%₹1,00,000194A
Interest from a bank, co-operative bank or post office, to others393(1) Sl. No. 5(ii).D(b)102110%₹50,000194A
Other interest (not on securities), paid by a specified person393(1) Sl. No. 5(iii)102210%₹10,000194A

Interest from a bank, co-operative bank or post office

TDS is deducted at 10%. The threshold is ₹1,00,000 where the recipient is a senior citizen, under code 1020, and ₹50,000 for any other recipient, under code 1021.

Other interest

Other interest, not on securities, paid by a specified person, for example interest on a loan or on a late payment, carries TDS at 10% above ₹10,000, under code 1022.

Interest on securities is covered separately, under Section 393(1) Sl. No. 5(i), code 1019 (earlier Section 193).

Worked example. On ₹25,000, TDS at 10% (code 1022) is ₹2,500, and ₹22,500 is paid.

Rates are before any surcharge and cess. Lower-deduction certificates, payees without a PAN and other conditions in the Act can change the TDS. This page is a general guide, not tax advice: confirm with your CA or the sources below.

FAQ

Questions, answered

Interest from a bank, co-operative bank or post office, to a senior citizen: Section 393(1) Sl. No. 5(ii).D(a) (code 1020). Interest from a bank, co-operative bank or post office, to others: Section 393(1) Sl. No. 5(ii).D(b) (code 1021). Other interest (not on securities), paid by a specified person: Section 393(1) Sl. No. 5(iii) (code 1022). It was earlier Section 194A of the Income-tax Act, 1961.

10%. Rates are before any surcharge and cess.

Interest from a bank, co-operative bank or post office, to a senior citizen: ₹1,00,000; interest from a bank, co-operative bank or post office, to others: ₹50,000; other interest (not on securities), paid by a specified person: ₹10,000.

Other TDS sections

Section 392Codes 1001–1004 · SalaryEarlier Section 192 Section 393(1) Sl. No. 1(i)Code 1005 · Insurance commissionEarlier Section 194D Section 393(1) Sl. No. 1(ii)Code 1006 · Commission and brokerageEarlier Section 194H Section 393(1) Sl. No. 2(i)Form 141 · Rent paid by individualsEarlier Section 194IB Section 393(1) Sl. No. 2(ii)Codes 1008, 1009 · RentEarlier Section 194I Section 393(1) Sl. No. 3(i)Form 141 · Purchase of propertyEarlier Section 194IA Section 393(1) Sl. No. 6(i)Codes 1023, 1024 · ContractorsEarlier Section 194C Section 393(1) Sl. No. 6(ii)Form 141 · Payments by individuals and HUFsEarlier Section 194M Section 393(1) Sl. No. 6(iii)Codes 1026–1028 · Professional and technical feesEarlier Section 194J Section 393(1) Sl. No. 8(ii)Code 1031 · Purchase of goodsEarlier Section 194Q Section 393(1) Sl. No. 8(iv)Codes 1033, 1034 · Business perquisitesEarlier Section 194R Section 393(1) Sl. No. 8(v)Code 1035 · E-commerce operatorsEarlier Section 194O Section 393(3) Sl. No. 5Codes 1064, 1065 · Cash withdrawalsEarlier Section 194N Section 393(3) Sl. No. 7Code 1067 · Payments to partnersEarlier Section 194T

Complete TDS rate chart for tax year 2026-27 →

Section 393 explained →   TDS section codes list →

Sources

Taken only from the Income Tax Department's official publications, as in force on 17 October 2026:

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