TDS Rules Changed: Now TDS may have to be paid for withdrawing more cash. According to the official website of Income Tax, if a person has not filed all or any income tax return in the last three assessment years, and he withdraws cash aggregating to more than Rs 1 crore in a financial year, then TDS on cash will have to pay.
The era of offline payment is slowly coming to an end. But there are still many people who deal in cash. For this you have to withdraw cash from the bank. But did you know that you may have to pay TDS on cash withdrawals after a certain limit? TDS on cash withdrawal under section 194N of the Income Tax Act is applicable from 1st September 2019 or from the financial year 2019-2020.
Annual Cash Withdrawal Limit
Under the section 194N of the TDS Act (Section 194N of the TDS Act), a person has to pay TDS if a person withdraws cash amounting to an aggregate amount exceeding Rs 20 lakh during a financial year. This limit is applicable if he has not filed income tax return for the last three consecutive assessment years.
According to the official website of Income Tax, if a person has not filed an income tax return in the last three assessment years, and he withdraws cash aggregating to more than Rs 1 crore in a financial year, then he has to pay TDS on cash. Will happen.
Who can deduct TDS on cash?
Banks or post offices deduct TDS on cash withdrawals in excess of the prescribed limit. It is deducted when cash in excess of Rs 20 lakh to Rs 1 crore is withdrawn from that person’s bank or post office account in a financial year. If you are a central or state employee, a bank employee, a post office employee. Engaged in the business of the bank. Operator of Bank’s ATM or is a person notified by the Government on the advice of RBI, then he is not to pay TDS.
How much TDS is deducted?
TDS will be deducted at the rate of 2% on cash withdrawals above Rs 1 crore. If the cash withdrawal person has filed Income Tax Return (ITR) for any or all the three previous assessment years.
Apart from this, TDS will be deducted at 2% on cash withdrawal above Rs 20 lakh and 5% on withdrawal of more than Rs 1 crore. If the cash withdrawal person has not filed ITR for any of the last three years.