Tax deduction at source on interest: prescribed rates and compliance rules for government securities payments. Tax on interest on Government securities must be deducted under section 193 at credit or payment, at prescribed rates varying by residential status and company type, with applicable surcharge. Exemptions arise on production of section 197 certificates, statutory exemptions for specified securities, or written declarations under section 197A(1). Payors must issue Form No.16 certificates, quote TAN on documents, file annual returns in Form No.25, apply rounding rules, and adhere to penalties and prosecution provisions for failures under sections 200, 201, 203, 203A, 206, 271C and 276B.