National Savings Scheme withdrawal withholding requires tax deduction at payment, subject to the prescribed threshold and specified exception.

Tax deduction at source on amounts covered by section 80CCA(2)(a) applies to National Savings Scheme withdrawals. Any person responsible for making the payment must deduct tax at the time of payment at 10%, where the amount exceeds the Rs.2,500 threshold. A specified exception permits no deduction in circumstances covered by section 393(4), Table serial number 19. The withholding mechanism corresponds to the earlier framework and retains the same payment category, recipient, deduction timing, rate and threshold.

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