Amendment of section 194EE.
75. In section 194EE of the Income-tax Act, for the words “twenty per cent.”, the words “ten per cent.” shall be substituted with effect from the 1st day of June, 2016.
Notes on Clauses:
Clause 75 of the Bill seeks to amend section 194EE of the Income-tax Act relating to payments in respect of deposits under National Savings Scheme, etc.
Under the existing provisions of the aforesaid section, any payment in respect of deposits under National Savings Scheme, etc., shall be liable for tax deduction at the rate of twenty per cent. in case such amount exceeds two thousand five hundred rupees.
It is proposed to reduce the said rate of tax deduction from twenty per cent. to ten per cent.
This amendment will take effect from 1st June, 2016.