National Savings Scheme withdrawals trigger withholding at payment once the prescribed threshold conditions are satisfied.

Tax deduction at source applies to payments of amounts referred to in section 80CCA(2)(a) of the Income-tax Act, 1961, relating to National Savings Scheme withdrawals. The person responsible for payment must deduct tax when making payment to the entitled recipient. The prescribed rate is 10%, subject to a threshold of Rs.2,500. The payment character, recipient category, rate, threshold and timing correspond with section 194EE, while an exception from deduction is identified under section 393(4), Table, serial number 19.

---

---

---