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 returns for the last three assessment years, and makes cash withdrawals exceeding Rs 1 crore in aggregate in a financial year, TDS on cash has to be deducted. have to pay.
TDS Rules Changed: 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 do you know that you may have to pay TDS on cash withdrawal 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 of TDS Act (Section 194N Section 194N of TDS Act) if a person withdraws cash in aggregate amounting to more than Rs 20 lakh during a financial year, then he has to pay TDS. 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 income tax return in the last three assessment years, and makes cash withdrawals exceeding Rs 1 crore in aggregate in a financial year, he has to pay TDS on cash. Will happen.
Who can deduct TDS on cash?
Banks or post offices deduct TDS for withdrawing cash beyond the prescribed limit. It is deducted when cash withdrawals in excess of Rs 20 lakh to Rs 1 crore are made from that person’s bank or post office account in a financial year. If you are a central or state employee, bank employee, post office employee. Engaged in the business of the bank. If the person is the operator of the bank’s ATM or a person notified by the government on the advice of RBI, he is not liable to pay TDS.
How much TDS is deducted?
TDS will be deducted at the rate of 2% on cash withdrawal above Rs.1 crore. If the person withdrawing cash 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 above Rs 1 crore. If the cash withdrawal person has not filed ITR for any of the last three years.
