Tax Deduction at Source: expanded threshold and specified withholding rates apply to interest payments to residents and non residents. Payers (other than individuals and HUFs) must deduct tax at source on interest other than interest on securities for the 1975-76 financial year once interest credited or paid to a resident in the year exceeds the prescribed threshold; payers may increase or reduce deductions to adjust prior excesses or deficiencies. Separate withholding rates and surcharge percentages apply under the Finance Act, 1975 for persons other than companies, domestic and non domestic companies, and higher prescribed rates apply for payments to non residents under section 195.