TDS Section 196D — Income from securities to FII / FPI
FY 2025-26 · Rate 20% (10% on dividend; LTCG 12.5%, STCG 20% from Apr 2025)
What does this section cover?
TDS on income (other than dividend) from securities paid to Foreign Institutional Investor.
Why this section: Special TDS regime for FIIs/FPIs investing in Indian securities under Section 115AD; treaty rates may apply via TRC.
Key facts
- Threshold
- No threshold
- Applicable for
- FY 2025-26
- Who deducts
- Issuer / payer
- Paid to
- FII / FPI
- Statutory source
- Section 196D, Income Tax Act
Common terms accountants use
If your description mentions any of these, Section 196D is likely the right answer. The matcher in this tool is a keyword scorer — not an AI classifier — so cross-check borderline cases against the official CBDT TDS rate chart.
Related TDS sections
Other sections in the same series or adjacent. Useful when narrowing down between similar payment categories.
Need a different section?
Describe the payment in plain English — “rent of plant”, “senior citizen interest”, “NRI dividend” — and the matcher will surface the right section.
Search TDS sections →Source: curated from the CBDT TDS rate chart. Dataset snapshot: 2025-04-01. Rates can change between Finance Acts and notifications — verify before deducting.