Section 194A → Section 208
TDS on Interest other than 'Interest on securities'
Quick Answer
Section 194A of the Income Tax Act, 1961 (TDS on Interest other than 'Interest on securities') corresponds to Section 208 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 194A
Section 194A of the 1961 Act sets out the rules on TDS on interest other than 'interest on securities'. TDS on FD interest, etc., if it exceeds Rs. 40,000 (Rs. 50,000 for senior citizens).
From 1st April 2026, the same subject sits at Section 208 of the Income-tax Act, 2025 — retained and renumbered as Section 208 of the Income-tax Act, 2025. Retained. Integrated with Form 15G/15H for non-deduction.
For Section 194A, the practical impact is rated Very High. Affects all bank depositors.
Sec 194A
Provision Summary
TDS on FD interest, etc., if it exceeds Rs. 40,000 (Rs. 50,000 for senior citizens).
Sec 208
Provision Summary
Retained. Integrated with Form 15G/15H for non-deduction.
Key Changes & Highlights
- Threshold limits are now tracked per-bank/per-institution via PAN to prevent split-deposit evasion.
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Frequently Asked Questions
What is Section 194A of the Income Tax Act, 1961 about?
Section 194A of the Income Tax Act, 1961 covers TDS on interest other than 'interest on securities'. TDS on FD interest, etc., if it exceeds Rs. 40,000 (Rs. 50,000 for senior citizens).
Which section replaces Section 194A in the Income-tax Act, 2025?
Section 194A of the Income Tax Act, 1961 maps to Section 208 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Integrated with Form 15G/15H for non-deduction.
What is the impact of the change to Section 194A under the new tax code?
The transition impact for Section 194A is rated Very High. Affects all bank depositors.
What should I watch out for when Section 194A moves to the 2025 code?
Threshold limits are now tracked per-bank/per-institution via PAN to prevent split-deposit evasion. These points are specific to Section 194A (TDS on Interest other than 'Interest on securities').
Disclaimer: This mapping of Section 194A (TDS on Interest other than 'Interest on securities') to Section 208 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 194A is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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