Udayavni Special

2 pc TDS on cash withdrawals of over Rs 1 crore from Sep 1: Tax dept


PTI, Aug 31, 2019, 11:58 AM IST

New Delhi: The revenue department on Friday said the 2 per cent tax deduction at source (TDS) on cash withdrawals of over Rs 1 crore will come into effect from September 1.

The Central Board of Direct Taxes (CBDT) further said that if a person has already withdrawn Rs 1 crore or more in cash up to August 31, 2019, in the current fiscal, the two per cent TDS shall apply on all subsequent cash withdrawals.

The government had made the provision of levying 2 per cent TDS on cash withdrawals exceeding Rs 1 crore in the Union Budget with an aim to discourage cash transactions and move towards less cash economy.

After receiving queries regarding the levy of the TDS, CBDT said the provision “is to come into effect from September 1, 2019”.

Hence, any cash withdrawal prior to September 1, 2019, will not be subjected to the TDS.

“However, since the threshold of Rs 1 crore is with respect to the previous year, calculation of amount of cash withdrawal for triggering deduction under section 194N of the Finance Act shall be counted from April 1, 2019,” it said.

Hence, if a person has already withdrawn Rs 1 crore or more in cash up to August 31, 2019 from one or more accounts maintained with a banking company or a cooperative bank or a post office, the two per cent TDS would apply on all subsequent cash withdrawals.

Top News

After farmers, govt targeting workers: Rahul on labour bills

Salman Khurshid, Brinda Karat named in Delhi riots charge sheet

Police pull down flex renaming LadyHill Circle as ‘Brahmashree Narayana Guru Circle’

Sandalwood drugs case: Two policemen suspended for leaking crucial information

COVID-19 cases in India breach 57-lakh mark, recovery rate at 81.55 per cent

Saudi king’s rare address to UN showcases monarch in charge

Watch: Three consecutive explosions trigger massive fire at ONGC plant in Gujarat




Related Articles More

CMS gets contract from Karnataka Bank, Paytm for home delivery of cash

Very few entrepreneurs have utilised the services of Mahila E-haat portal: WCD Min

Food delivery sector nearing pre-COVID level of recovery: Zomato

KKR to invest Rs 5,550 crore in Reliance Retail Ventures to pick 1.28pc equity stake

Amazon India adds Kannada, 3 other languages to woo shoppers ahead of festive season

MUST WATCH

‘Road Politics in Times of Pandemic’: St Aloysius Institution reacts to road renaming

Mangaluru Light House Hill Road renamed as Mulki Sunder Ram Shetty Road

Soraba : District Excise Department seized Millions worth of Marijuana | Udayavani

Hospet : Tungabhadra Dam Gates Are Opened | TB Dam | Udayavani

Surathkal: Police arrest four in house burglary case

Latest Additions

Who was Breonna Taylor and what happened to her?

Senior actor Rockline Sudhakar succumbs to cardiac arrest on film set

After farmers, govt targeting workers: Rahul on labour bills

Salman Khurshid, Brinda Karat named in Delhi riots charge sheet

Why Covid-19 numbers are rising in Bhubaneswar?

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.