The CBDT vide Notification No. 27/2025 dated April 04, 2025, specifies that no tax deduction under section 194EE will be made on payments of amount referred to section 80CCA(a) of the Income Tax Act, withdrawals from National Savings Scheme deposits by individuals, effective from the notification’s publication date.
In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies that no deduction of tax shall be made under section 194EE of the Act on payment of amount referred to in clause (a) of sub-section (2) of section 80CCA, which is withdrawn by an assessee being an individual, on or after the date of publication of this notification in the Official Gazette.
Relevant Provisions:
Payments in respect of deposits under National Savings Scheme, etc.
Section 194EE of the Income Tax Act:
The person responsible for paying to any person any amount referred to in clause (a) of sub-section (2) of section 80CCA shall, at the time of payment thereof, deduct income-tax thereon at the rate of ten per cent :
Provided that no deduction shall be made under this section where the amount of such payment or, as the case may be, the aggregate amount of such payments to the payee during the financial year is less than two thousand five hundred rupees :
Provided further that nothing contained in this section shall apply to the payment of the said amount to the heirs of the assessee.
Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan.
Section 80CCA of the Income Tax Act:
(a) standing to the credit of the assessee under the scheme referred to in clause (i) of sub-section (1) in respect of which a deduction has been allowed under sub-section (1) together with the interest accrued on such amount is withdrawn in whole or part in any previous year, or
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/04/CBDT-No.-27_2025.pdf
