Tax Deduction at Source on National Savings Scheme withdrawals: TDS and surcharge apply, with exemptions and payer obligations. Section 194EE mandates deduction of tax at source at twenty per cent on payments falling under clause (a) of sub section (2) of section 80CCA (notably NSS withdrawals), with a twelve percent surcharge on such tax. Exemptions include payments below the two thousand five hundred rupee threshold in a financial year, payments to heirs of a deceased depositor, and where an individual resident furnishes Form No.15-I declaring nil tax. Deductors must remit deducted tax timely, issue Form No.16A, obtain and quote a TAN, file annual returns of deduction, and comply with prescribed penalties and interest for defaults.