TDS on interest Paid to NRI individual.

This discussion clarifies the Tax Deducted at Source (TDS) applicable when a private limited company pays interest on unsecured loans to an NRI individual. It confirms that Section 195 applies to all assessees, including private limited companies. The advice also highlights the importance of considering the Double Taxation Avoidance Agreement (DTAA) with the NRI's country, as TDS should be deducted at the lower applicable rate specified in the DTAA, if any.