Tax Relief on Withdrawals from National Savings Scheme Announced

In April 2025, the Central Government issued a notification to exempt tax deductions under section 194EE of the Income Tax Act of 1961. This exemption applies to withdrawals from the National Savings Scheme and deferred annuity plans specifically for individual assesses. The Ministry of Finance and Department of Revenue clarified that no tax deduction will be applied to payments outlined in clause (a) of sub-section (2) of section 80CCA. This amendment is designed to provide tax relief and encourages individual investors to utilize specified savings instruments.