This notification, issued by the Central Board of Direct Taxes, specifies that no tax will be deducted at source (TDS) under Section 194EE of the Income-tax Act, 1961 on the withdrawal of amounts under Section 80CCA(2)(a).
Key Changes
Exemption from TDS under Section 194EE for withdrawals under Section 80CCA(2)(a) made by individual assessees.
The exemption applies to withdrawals made on or after April 4, 2025, the date of publication of the notification.
Impact Analysis
Impact on Individual Assessees
This simplifies the withdrawal process for individual assessees as they do not need to claim refunds for TDS deducted on these withdrawals.
Impact on Financial Institutions
Financial institutions need to update their systems to reflect this change and ensure no TDS is deducted on eligible withdrawals.
Suggested Action Items
Ensure compliance with the notification by ceasing TDS deductions on eligible withdrawals made on or after April 4, 2025.
Key Entities Referenced
Central Board of Direct Taxes (CBDT): The issuer of the notification and the authority responsible for direct tax administration in India.
Income-tax Act, 1961: The primary legislation governing income tax in India. Section 197A, Section 194EE and Section 80CCA are sections within this act.
Section 194EE: The section of the Income-tax Act, 1961 that mandates the deduction of tax at source on certain payments. This notification provides an exemption from this section under specific circumstances.
Section 80CCA: The section of the Income-tax Act, 1961 that defines the amounts to which this notification refers. Specifically, subsection (2)(a) is referenced.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-04042025-262293
CG-DxLx-xEG-I0D4H0x4x2x0 25-262293
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 1596] नई दिल्ली, िुक्रिार, अप्रलै 4, 2025/चत्रै 14, 1947
No. 1596] NEW DELHI, FRIDAY, APRIL 4, 2025/CHAITRA 14, 1947
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
(केंद्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई दिल्ली, 4 अप्रलै , 2025
स.ं 27/2025
(आय-कर)
का.आ. 1615(अ).—केंद्रीय सरकार, आय-कर अजधजनयम, 1961 (1961 का 43) की धारा 197क की उपधारा
(1च) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, यह जिजनर्िडष्ट करती ह ै दक धारा 80गगक की उपधारा (2) के खंड (क) म ें
जनर्िडष्ट ऐसी रकम के संिाय पर अजधजनयम की धारा 194ड.ड. के अधीन कर की कोई कटौती नहीं की िाएगी, िो दकसी ऐस े
जनधाडररती द्वारा िो व्यजष्टक ह,ै रािपत्र में इस अजधसूचना के प्रकािन की तारीख को या उसके पश्चात जनकाली गई ह।ै
[फा. सं. 370142/13/2025-टीपीएल]
सुरबेंि ुठाकुर, अिर सजचि, (कर नीजत और जिधान)
2372 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 4th April, 2025
No. 27/2025
(INCOME-TAX)
S.O. 1615(E).—In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax
Act, 1961 (43 of 1961), the Central Government hereby specifies that no deduction of tax shall be made under section
194EE of the Act on payment of amount referred to in clause (a) of sub-section (2) of section 80CCA, which is
withdrawn by an assessee being an individual, on or after the date of publication of this notification in the
Official Gazette.
[F. No. 370142/13/2025-TPL]
SURBENDU THAKUR, Under Secy. (Tax Policy and Legislation)
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.