Notification no. 27/2025, dated 04-04-2025
The Finance Act 2025 inserted a second proviso in Section 80CCA(2) to exempt the withdrawals made by an individual from NSS on or after August 29, 2024. The exemption shall be available:
(a) To an individual investor only.
(b) For withdrawing any amount standing to the credit of the individual under NSS with interest accrued on such amount.
Since the withdrawal from the NSS account is not subject to tax, the Central Board of Direct Taxes (CBDT) has notified that no tax shall be deducted at source under section 194EE on payment of the amount standing in the credit of the assessee under NSS in respect of which deduction was allowed under section 80CCA.
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