Tax deduction at source on bank time deposit interest now applies; deduct at credit or payment, subject to exemptions and compliance. Section 194A was amended to make tax deduction at source applicable to interest on time deposits with banking companies and certain cooperative societies from 1 October 1991, with deduction required at the time of credit or payment. Cumulative deposits credited in the payer's books trigger deduction on each credit; interest relating to periods before 1 April 1991 on earlier deposits is excluded. Exemptions include a threshold for aggregate interest in a year and declarations or certificates permitting nil or lower deduction. Payers must obtain TAN, issue TDS certificates, file returns, and face interest, penalties and criminal sanctions for non-compliance.