09 June 2023
As per section 194A read with Part II of First Schedule to Finance Act, tax is to be deducted @ 10% from the amount of interest. However, if the payee does not furnish his Permanent Account Number (PAN), then the payer has to deduct tax at the higher of following: At the rate specified in the relevant provision of the Income-tax Act. At the rate or rates in force, i.e., the rate prescribed in the Finance Act. At the rate of 20%
So, if PAN is provided deduct TDS at 10% rate. i.e. Rs. 900/-.
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