Amended and updated notes on section 194EE of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Payments in respect of deposits under National Savings Scheme, etc.
Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 194EE of IT Act 1961 provides for Payments in respect of deposits under National Savings Scheme, etc.
Recently, we have discussed in detail section 194E (Payments to non-resident sportsmen or sports associations) of IT Act 1961. Today, we learn the provisions of section 194EE of Income-tax Act 1961. The amended provision of section 194EE is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 194EE of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.
Section-194EE: Payments in respect of deposits under National Savings Scheme
The person responsible for paying to any person any amount referred to in clause (a) of sub-section (2) of section 80CCA shall, at the time of payment thereof, deduct income-tax thereon at the rate of ten per cent:
Provided that no deduction shall be made under this section where the amount of such payment or, as the case may be, the aggregate amount of such payments to the payee during the financial year is less than two thousand five hundred rupees:
Provided further that nothing contained in this section shall apply to the payment of the said amount to the heirs of the assessee.