Payments in respect of deposits under National Savings Scheme etc. [Section 194EE] under Deduction of Tax at Source :

(1) The person responsible for paying any amount from National Savings Scheme Account under section 80CCA shall deduct income-tax thereon at the rate of 20% [ wef from 1st June 2016 – rate has been increased to 10% (FY 2016-2017 / AY 2017-2018 )]at the time of payment.

(2) However, no such deduction shall be made where the amount of payment or the aggregate amount of payments in a financial year is less than Rs 2,500.

(3) The provisions of this section shall not apply to the payments made to the heirs of the assessee.