Income Tax Act 2023
Section 104 - Deduction of Tax from Interest Income of Resident
(as updated till Finance Act 2024)
(1) Where a specified person pays interest to any person other than a bank or 1[finance company] against a loan or the acceptance of a loan, he shall deduct tax at the rate of 10% (ten percent) on the interest paid at the time of payment of said interest.
(2) The Board may, on application of the assesse subject to verification, issue a certificate in writing to the effect that no deduction of tax shall be applicable on the amount due to the assessee under this section or that deduction of tax shall be applicable at a reduced rate.
1 The words “finance company” were substituted for the word “financial institution” by section 14(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
Disclaimer: This is the authentic English text of the Income Tax Act 2023, as published under SRO No. 404-Law/2025 dated 08 October 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.