NSS(1989) tax

everyone,

I'm new to this forum and I'm hoping you can help me with a question about my mother's NSS Postal account. She opened the account in 1989 with a deposit of ₹45,000. Over the years, the balance has grown to around ₹7 lakhs.

My question is, if she withdraws all of the money, will the post office deduct TDS? And will she have to pay income tax on the amount?

If you have any suggestions on how to avoid paying tax and TDS, I would be grateful. Also, if my mother withdraws the money and gifts it to my sister and me, will we be taxed on the amount?

Thanks in advance for your help.

Shantanu