TaxTMI 
TaxTMI 
A payment of interest to institution like International finance corporation is exempt from TDS as per provisions of sec 10(6) does this infer that IFC is not required to obtain a PAN in respect of payments received by it india in respect of the lendings it has made to Indian companies
Requirement to obtain PAN to International finance corporation in respect of interest received by it
25 Mar 2010 
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PAN requirement for exempt interest payments may be inapplicable where the income is exempt under section 10(6), but views differ.
The question is whether interest receipts claimed to be exempt under section 10(6) negate the obligation to furnish a PAN under section 206AA. One view holds that exemption from tax removes applicability of withholding provisions and the PAN requirement because section 206AA applies only where tax is deductible; another view contests the existence of a specific exemption for interest to international financial institutions and thus questions the non-application of TDS and PAN duties. (AI Summary)
The question is whether interest receipts claimed to be exempt under section 10(6) negate the obligation to furnish a PAN under section 206AA. One view holds that exemption from tax removes applicability of withholding provisions and the PAN requirement because section 206AA applies only where tax is deductible; another view contests the existence of a specific exemption for interest to international financial institutions and thus questions the non-application of TDS and PAN duties. (AI Summary)