03 August 2010
As per S. 194 A of the Income Tax Act, there are few exceptions where TDS is not required to be deducted, like in the cases of interest payments to any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank),..etc. However, the given case does not seem to be falling in any of those exceptions, so TDS has to be deducted.
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