Whether TDS required to be deducted on payment made to Government?

Ans. No tax required to be deducted by any person from any sum payable to-

1. the Government, or

2. the Reserve Bank of India, or

3. a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income, or

4. a Mutual Fund specified under clause (23D) of section 10,

where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it.