How can debentureholders adjust the amount deducted as Tax Deducted at Source (TDS)?

By offsetting the TDS amount against their tax liability

When debentureholders receive interest income on their debentures, the company issuing the debentures is required to deduct TDS (Tax Deducted at Source) if the interest amount exceeds a certain threshold limit as per tax regulations. Debentureholders can adjust the TDS amount against their overall tax liability when they file their income tax returns. This means that the TDS amount deducted by the company is considered as a prepayment of the income tax owed by the debentureholder. If the TDS amount is greater than their actual tax liability, they may be eligible for a tax refund. If the TDS deducted is higher than the actual tax liability, debentureholders can claim a refund for the excess TDS amount by filing an income tax return. The tax authorities will review the return and, if eligible, refund the excess TDS amount to the debentureholder.