The Ministry of Finance, Dept. of Revenue has recently notified vide Notification No. 27/2025 dated 4th April 2025, that provides TDS exemption on certain withdrawals from the National Savings Scheme (NSS) made to non-residents.
What the Notification Covers:
No TDS shall be deducted under Section 194EE on payments made to a non-resident if the withdrawal:
- Is from the National Savings Scheme (NSS), and
- Falls under clause (a) of sub-section (2) of Section 80CCA – i.e., not eligible for deduction under 80CCA, usually in cases of premature or otherwise ineligible withdrawals.
Until now, withdrawals exceeding ₹2,500 from NSS accounts triggered TDS @10% under Section 194EE, even for non-residents.
With this notification, such withdrawals to non-residents (under the above condition) will be fully exempt from TDS.
This TDS exemption is issued under Section 197A(1F), which empowers the government to notify payments on which no tax should be deducted.
Summary:
| Provision | What’s Changed |
| Section 194EE | No TDS on NSS withdrawals to non-residents (specific cases) |
| Section 80CCA(2)(a) | Applies to amounts not eligible for 80CCA deduction |
| 197A(1F) | Government’s power to notify such TDS exemptions |
Download the Official Notification:
To read the full details of Notification No. 27/2025, dated 4th April 2025, you can download the official document from the following link:
Download Notification Document