(1) Where a prescribed person pays interest to any person other than a bank or financial institution  against a loan or borrowing, tax shall be deducted at the rate of 10% (ten  percent) on the interest paid at the time of payment of said interest. 

 (2) The Board may, subject to verification on application by the taxpayer, issue a written certificate to the effect that no deduction of tax shall be applicable on the amount due to the taxpayer under this section or that deduction of tax shall be applicable at a reduced rate.