Interest covers a wise spectrum of payments, including interest payable in any manner in respect of loans, debts, deposits, credits and other similar rights and obligations. It includes any service fees and other charges in respect of such loans, debts, deposits and credits. [ITO vs. Arihant Trust & Others]

The provisions of Section 194A are attracted in respect of interest paid or payable for paying the compensation for acquisition of land. [Baldeep Singh vs. Union of India & Another]

As per Section 194A, tax is to be deducted at source on the gross interest payable by a person and not on the net interest after mutual set off between the parties. [CIT vs. Sundararamier & Sons]

The whole scheme of TDS is based on the assumption that the person whose liability is to pay an income knows the identity of the beneficiary or the recipient of the income. Hence because of this reason the TDS mechanism cannot be put into practice until the identity of the person in whose hands it is includible as income can be ascertained.

The person responsible for making the interest payment may at the time of making any deduction, increase or decrease the amount to be deducted for the purpose of adjusting any excess or deficiency arising out of any previous deduction or failure to deduct during the financial year.

Time Deposits mean deposits (excluding recurring deposits) repayable on the expiry of fixed periods.

Offshore banking units have the same meaning assigned to it in clause (u) of Section 21 of the Special economic Zones Act' 2005.

TDS has to be deducted in case of interest paid by a consignor to their commission agent. [Circular F. No. 12/12/68- IT (A-II), dtd. 23-09-1968].

In case of entities which are exempt under Section 10 and who are not required to file return of income u/s 139 of the Income Tax Act, there is no requirement for TDS since their income is anyways exempt from tax.