Under the provisions of Section 194 A, it has been made obligatory for a person who is responsible for paying any interest (other than “interest on securities”) to the recipient, to deduct income tax at source at the rates in force. This had to be done either at the time of credit of such interest income exceeding ` 5,000 to the account of the payee, or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier. In certain circumstances, prescribed under the said Section, no deduction has to be made. |
