Question
Under which section of the Income Tax Act, 1961, are the
provisions related to TDS on interest other than interest on securities mentioned?Solution
Section 194A of the Income Tax Act, 1961 deals with the provisions related to TDS on interest other than interest on securities. It states that any person, other than an individual or a Hindu undivided family, who is responsible for paying interest (other than interest on securities) to a resident, is required to deduct TDS at the prescribed rates. The TDS amount is then deposited with the Income Tax Department on behalf of the recipient.
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