Withholding on National Savings Scheme payments requires income tax deduction at source, subject to a de minimis threshold and heirs exception.

Section 194EE requires payors of amounts falling under clause (a) of sub-section (2) of section 80CCA (deposits under the National Savings Scheme) to deduct income-tax at the rate of twenty per cent at the time of payment, subject to a de minimis exemption for small payments and an exemption for payments to the heirs of the assessee.

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