Deduction of tax at source on interest on government securities: revised withholding rates and compliance instructions. Deduction of tax at source from payments of interest on Government securities is adjusted to reflect rates amended by the Finance Act, 1985; income-tax and surcharge must be deducted at the revised rates from payments made after March 31, 1985. Treasury and sub-treasury officers are to issue the enclosed draft circular and implement instructions to ensure deductions conform to the amended statutory rates and withholding obligations for the financial year 1985-86.