Tax Deduction at Source on interest: sets withholding rates, exemptions, filing and penalty obligations for payers. Deduction of tax at source from interest on securities must be made at credit or payment, with credits to suspense accounts treated as payee credit. Prescribed withholding rates and surcharges apply to residents, non-resident Indians, other non-residents, and companies, subject to specified exemptions and certificates that permit nil or lower deduction. Persons responsible for deduction must deposit withheld tax within prescribed timeframes, obtain and quote tax deduction account numbers, furnish TDS certificates and annual returns in prescribed forms, apply rounding rules to tax amounts, and face interest, penalties and possible prosecution for failures.