Assertion (A): If the interest is payable outside India, tax must be deducted at source.

Reason (R): If tax has not been deducted at source, the amount paid as interest will not be allowed as a deduction in computing business income.


  • A

    Both (A) and (R) are correct and (R) is the correct explanation of (A).

  • B

    Both (A) and (R) are correct but (R) is not the correct explanation of (A).

  • C

    (A) is correct but (R) is wrong 

  • D

    (A) is wrong but (R) is correct