National Savings Scheme withdrawals attract fixed-rate tax deduction at payment, subject to the prescribed threshold and specified exception.

Tax deduction at source applies to payments referred to in section 80CCA(2)(a), relating to National Savings Scheme withdrawals. Any person responsible for making the specified payment must deduct tax at source at a fixed rate of 10% at the time of payment, where the amount exceeds the threshold of Rs.2,500. The framework corresponds to the earlier withholding provision and indicates an exception from deduction under the relevant entry in section 393(4).

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