TDS on interest payments: deduction required only at actual payment for government, public sector banks, and PFIs. Amendment to section 195 provides that tax deduction at source on interest payable by the Government, a public sector bank (per clause (23D) of section 10) or a public financial institution shall be made only at the time of payment, whether in cash, by cheque or draft, or by any other mode; the proviso is deemed effective from 1 June 1987.