Quick Summary
Exemption to withdrawals by Individuals from National Savings Scheme from taxation Section 80CCA, inter-alia, provides for a deduction to an individual, or a Hindu undividedfamily, for any amount deposited in the National Savings Scheme (NSS). It is also provided that no deduction would be allowed in relation to such amount on or after the 1st day of April, 1992. 2. Sub-section (2) of section 80CCA, inter-alia, provides that where such amount, together withthe interest accrued on such amount
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FAQ :
Section 80CCA previously provided a tax deduction for amounts deposited in the National Savings Scheme (NSS) by individuals and Hindu undivided families. However, this provision ceased to apply for deposits made on or after April 1, 1992.
Section 80CCA has been amended to provide an exemption from tax on withdrawals made by individuals from NSS deposits for which a deduction was allowed. This applies to withdrawals made on or after August 29, 2024.
The tax relief applies to deposits made before April 1, 1992, along with any accrued interest, provided that a deduction was claimed on these deposits.
The amendment is effective retrospectively from August 29, 2024.
The amendment was introduced following a notification that no interest would be paid on NSS balances after October 1, 2024, which could compel individuals to withdraw funds and face hardship.
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