Tds under income tax act

You cannot deduct TDS from interest paid to Bank. Even if its not under NI Act but is governed by Banking Regulation Act.

I agree with Mr Mihir that TDS is not required to be made for Banks coming Banking regulation Act. Exim Bank is set up by an Act of Parliament. Whether TDS is required to made on interest payments against loan taken from exim bank , If so , at what rate. It is an ECB loan denominated in Euros.

No Company is allowed to use the word 'Bank' in their names unless it is a bank approved and licenced by RBI. Even if it is enacted as an Act in the parliament, it does not become independent from the regulations of banking regulation act and RBI. It is still a bank. UTI is a mutual fund company even if it has been enacted as an Act in the parliament, and it is subject to the regulations of SEBI.

As per section 196 of IT Act, no deduction of tax shall be made from any sum payable to

1) Government

2) Reserve Bank of India

3) Corporation established by or under a Central Act

4) Mutual fund specified under clause 23D

Recently CBDT has issued a circular, which allows to any person dealing with bank, not required to deduct TDS  

NO TDS is required to be deducted.....

No TDS is required if  any paid to bank only.

I shall grateful if a copy of the cbdt circular is given in this regard