Section 194EE – TDS on National Saving Scheme

A complete guide on Section 194EE- TDS from Payment in Respect of Deposit under National Saving Scheme etc

The person responsible for paying to any person any amount standing to the credit of such person under National Saving Scheme (to which section 80CCA was applicable) together with interest accrued thereon, shall deduct income-tax thereon such amount at the time of its payment.

National Saving Scheme Section 194EE – Quick Summary

Person Responsible to Deduct TaxPost Master
Exemption LimitRs. 2,500
TDS Rate10% (20% up to 31.5-2016)
Time of Deduction of TDSAt the time of payment
Time for Deposit of TDSWithin one week from of the day of the month of tax deduction. For month of March, before 30th April.
Certificate of TDSForm 16A for each quarter is to be issued within 15 days from the due date for furnishing the statement of tax deducted at source under rule 31A i.e. on or before 15th August, 15th November, 15th February and 15th June
Quarterly Return of TDSIn form 26Q on or before 31st July, 31st October and 31st January for the first three quarters and on or before 31st May for the last quarter.
AO’s Certificate for Deduction at Lower Rate or Non DeductionNo
Is Self Declaration by Payee for Non Deduction AdmissibleYes, by an individual in new Form No. 15G/ 15H.

Other Important TDS Articles

TDS Returns and Payment Due Dates F.Y.2017-18
TDS Rates Chart [A.Y.2018-19] [A.Y. 2017-18]
Penalty for Late & Non Filing of TDS Returns [Latest Amendments]
Time Limit to Deposit TDS & TDS Certificate [A.Y.2017-18]
TDS Return – All You need to Know about TDS Return [A.Y. 2017-18]
Persons Liable to Deduct Tax at Source (TDS)
What is Form 16 (TDS Certificate)?
TCS Rates Chart [A.Y. 2018-19] [F.Y. 2017-18]

Categories TDS

1 thought on “Section 194EE – TDS on National Saving Scheme”

  1. I am 80 years old and now living at Chennai,moved away from madurai where I have my NSS account. I want to close the same on or after 01-04-2019. what is the TDS rate payable. The said scheme is with drawn and only interest is getting accrued without any TDS effected. Now the I have the doubt whether TDS is to be effected on the interest content as in bank deposits or on the entire amount with drawn.
    My DOB : 23-051939. I can claim excemption for AY 2019-21 upto Rs5 lacs. if the interest alone is taxable, my total income will fall below Rs5lacs. If the entire amount (both the capital and the interest accrued) is subject to tax on withdrwal, I have to pay tax. So i raise my point for clarification.


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