Budget 2023 takes away TDS Exemption on Payment of Interest on listed Debentures:

Budget 2023 takes away TDS Exemption on Payment of Interest on listed Debentures The Union Budget 2023 was presented by Finance Minister Nirmala Sitharaman today at parliament. Some relief has been removed in Income Tax as exemption in TDS on Payment of Interest on listed Debentures. Let's look into this, what's removed?

Removal of exemption from TDS on payment of interest on listed debentures to a resident:

Section 193 of the Act provides for TDS on payment of any income to a resident by way of interest on securities. The proviso to section 193 of the Act provides exemption from TDS in respect of payment of interest on certain securities. Clause (ix) of the proviso to the aforesaid section provides that no tax is to be deducted in the case of any interest payable on any security issued by a company, where such security is in dematerialized form and is listed on a recognized stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (32 of 1956) and the rules made thereunder. It is seen that there is under reporting of interest income by the recipient due to above TDS exemption. Hence, it is proposed to omit clause (ix) of the proviso to section 193 of the Act. This amendment will take effect from 1st April, 2023.