SB ORDER NO. 5 /2007

SB ORDER NO. 5 /2007

No.108-56/97-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001.

Date: 25.5.2007

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Deduction of TDS and surcharge on TDS in case of withdrawals

from NSS-1987 during 2007-2008.

Sir / Madam,

The undersigned is directed to say that the Government has amended rates of

Income Tax through Finance Act 2007.

2. Accordingly, the rate of TDS and surcharge on TDS in case of withdrawals

from NSS-87 account (U/S 194-EE) for 2007-2008 will be as under:-

TDS

The rate of Tax to be deducted will be 20% of the amount of withdrawal during

2007-2008.

Surcharge

The amount so deductible shall be enhanced by surcharge calculated as per

following rate:-

a. 10% of TDS, if the income or aggregate of incomes paid or likely to be paid

exceeds Rs. 10 lac during the financial year 2007-2008.

Education Cess

The amount of TDS+Surcharge shall be further enhanced by 3% of TDS+Surcharge on account of Education Cess.

3. No tax will be deducted if the amount of total of aggregate withdrawals during

the financial year is less than Rs. 2500/-(194-EE).

4. Tax shall not be deducted at source on withdrawal from NSS-87 account payable to resident individual who furnishes a declaration in writing (in duplicate) in form 15-G up to the amount of withdrawal of Rs. 1,10,000/- (for men) and Rs. 1,45,000/- (for women). No tax will be deducted on withdrawal from NSS-87  account payable to senior citizen of 65 years of age or above who furnishes declaration in writing (in duplicate) in Form 15-H.

5. It is requested that this may kindly be brought to the notice of all post offices including sub post offices for information, guidance and necessary action.

Yours faithfully,

(Kawal Jit Singh)

Assistant Superintendent Posts (SB&CC)