Section 23 - Amendment of section 195 - Direct Tax Laws (Second Amendment) Act, 1989

23. Amendment of section 195. In section 195 of the Income-tax Act, in sub-section (1), before the Explanation, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1987, namely :- Provided that in the case of interest payable by the Government or a public sector bank within the meaning of clause (23D) of section 10 or a public financial institution within the meaning of that clause, deduction of tax shall be made only at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode. .