Exemption from TDS on Withdrawal from NSS by Individuals

Notification/Circular No. – Notification No. 27/2025

Document Date – April 4, 2025

Applicable Act/Rule – Income-tax Act, 1961

Applicable Section/Rule – Section 194EE, Section 80CCA(2)(a)

Central Government has notified that no tax shall be deducted at source (TDS) under Section 194EE of the Income-tax Act on payments related to withdrawals from the National Savings Scheme (NSS), as specified in clause (a) of Section 80CCA(2), if such withdrawal is made by an individual.

This exemption applies from the date of publication of the notification, i.e., April 4, 2025. The move aims to provide relief to individual investors withdrawing their matured NSS balances by ensuring they receive the full amount without TDS deduction.

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