Deduction of tax at source: interest on government securities taxed when credited or paid, with strict withholding and compliance required. Amendments to Section 193 require tax withholding on interest on government securities at the earlier of credit or payment, with credits to interest or suspense accounts deemed as credit to the payee; the exemption ceiling for certain debenture interest paid to resident individuals is increased and surcharge on total income is raised, necessitating higher withholding. Deductors must issue prescribed TDS certificates, quote TAN, file annual returns of TDS on interest on securities in the prescribed form, and pay deducted sums to government within prescribed time, with penalties and prosecution for non-compliance.