Explanation
Section 194EE of IT Act 1961 (consolidated under §393 in IT Act 2025) applies when a payment is made under the National Savings Scheme (NSS Post Office) on closure/repayment and the amount exceeds ₹2,500. TDS rate: 10%. If PAN not provided, TDS at 20%. This section is relatively niche — applies mainly to post office NSS accounts that are being closed. Not applicable to PPF withdrawals (PPF is entirely exempt under §10(11)/§11). Verify on the income-tax portal before filing.
Related terms and sections
Confidence: medium. Verify against primary sources (incometaxindia.gov.in, cbic-gst.gov.in, mca.gov.in) before filing.