FM Nirmala Sitharaman proposes Income Tax Exemption to Withdrawals from National Savings Scheme in Budget 2025

The Union Budget 2025 proposed providing income tax exemptions on withdrawals from the National Savings Scheme (NSS). This exemption is aimed at offering additional benefits to taxpayers by ensuring that interest or principal withdrawals from the NSS do not incur tax liabilities. The proposal aims to encourage savings under the NSS scheme and offer better returns to taxpayers without the added burden of taxes. It is expected to incentivize investment in government-backed savings instruments and promote financial security among lower and middle-income groups. The tax exemption is a part of the government's efforts to make saving more attractive and improve overall financial inclusion in the country.