30 May 2011
Interest otherthan interest on Securities payable to Railway Dept. TDS applicable rate is 10%.If PAN is not able of deductee, then TDS shall be 20%. We are doubt, whether TDS u/s 194A is applicbale to Railway Dept. In otherwords, if we pay interest to Railway Dept. towards security Deposits, we will deduct TDS @ 10% from such interest payment or not. This doubt arises as Railway is fully owned by Central Govt. Similarly, whether we can deduct TDS from the interest payable to Income Tax Dept.
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