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<h1>Provident Funds Exempt from Tax Deduction on Interest from Government Securities u/s 193 of Income-tax Act.</h1> The circular addresses the exemption from the requirement of deducting income tax at source under section 193 of the Income-tax Act for payments of interest on securities to provident funds (PFs) established under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. These PFs, whose income is exempt under section 10(25)(ii) of the Income-tax Act, 1961, can receive interest income from Central and State Government securities without tax deduction at source. This exemption applies from the financial year 1995-96 onwards.