Under the Income Tax Act, the 'TDS' on payment of interest on securities (other than 8% taxable government securities) is governed by which section? MCQ with Answer and Explanation

Question
Under the Income Tax Act, the 'TDS' on payment of interest on securities (other than 8% taxable government securities) is governed by which section?
A. Section 194A
B. Section 194C
C. Section 194
D. Section 194J
Answer: Option C
Solution (By JKSSB Mock Tests)
Section 194 of the Income Tax Act mandates TDS on income by way of interest on securities (like debentures, corporate bonds) at the prescribed rates.
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Correct Answer: Option C

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This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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