TDS on Cash Withdrawal
subhagan sreerangam (7054 Points)
31 August 2019
TDS on Cash Withdrawal with effect from 01-09-2019.What are the conditions about it.
1 Replies
Shivam RC
(Student)
(23683 Points)
Replied 31 August 2019
SECTION 194N of the Income Tax Act will be applicable w.e.f 01st September 2019 ( Tomorrow ).
BANKS and POST OFFICES to deduct TAX FROM CASH WITHDRAWALS EXCEEDING Rs. 1 crore :
In order to discourage cash transactions and move towards less cash economy, a new Section 194N has been proposed to be inserted in the Income-tax Act. As per this new provision, tax shall be deducted by a banking company or co op. bank or post office at the rate of 2% from the amount withdrawn in cash from any account (saving or current account) if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the year.
However, no tax shall be deducted if amount is withdrawn from the bank or post office by following recipients:
1. Central or State Government
2. Banks
3. Co-op. Banks
4. Post Office
5. Banking correspondents
6. White label ATM operators
7. Other persons notified by the Govt. in consultation with the RBI.
BANKS and POST OFFICES to deduct TAX FROM CASH WITHDRAWALS EXCEEDING Rs. 1 crore :
In order to discourage cash transactions and move towards less cash economy, a new Section 194N has been proposed to be inserted in the Income-tax Act. As per this new provision, tax shall be deducted by a banking company or co op. bank or post office at the rate of 2% from the amount withdrawn in cash from any account (saving or current account) if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the year.
However, no tax shall be deducted if amount is withdrawn from the bank or post office by following recipients:
1. Central or State Government
2. Banks
3. Co-op. Banks
4. Post Office
5. Banking correspondents
6. White label ATM operators
7. Other persons notified by the Govt. in consultation with the RBI.
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