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Section 194EE-Payment of an amount standing to the credit of an individual under NSS (National Savings Scheme)

Per section 80CCA(2)(a), TDS (Tax Deducted at Source) is the tax collected by an individual when paying for someone else's service. It's deducted during payment at a 10% rate.

No TDS is deducted if the total payment for a service in a financial year is less than two thousand five hundred rupees. Also, TDS rules don't apply to payments made to an assessee's heirs. TDS Section 194EE pertains to Payments for Deposits under the National Savings Scheme. Here is all information about the TDS rules of section 194EE of the income-tax act.

Who Deducts TDS under Section 194EE?

Anyone needing to pay another person under the National Pension Scheme, including interest, must deduct income tax at the time of payment. 

When is TDS under Section 194EE Deducted?

TDS is deducted when the payment is made. 

What is TDS Rate under Section 194EE?

TDS is deducted at a fixed rate of 10% (7.5% from 14.05.2020 to 31.03.2021) under section 194EE. 

When is TDS Not Deductible?

TDS isn't deducted in the following situations under section 194EE: 

  1. Payment amount is less than Rs. 2,500.
  2. Payment is made to the deceased's legal heirs.
  3. Recipient submits a declaration in form 15G or 15H under section 197A.

 

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The Tax Heaven

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