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The Central Board of Direct Taxes (CBDT) further said that if a person has already withdrawn Rs 1 crore or more in cash up to August 31, 2019, in the current fiscal, the two per cent TDS shall apply on all subsequent cash withdrawals.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Hence, if a person has already withdrawn Rs 1 crore or more in cash up to August 31, 2019 from one or more accounts maintained with a banking company or a cooperative bank or a post office, the two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.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Four-day market rally makes investors richer by Rs 8.48 lakh crore
Kotak Bank barred from onboarding customers online, issuing fresh credit cards
Reverse migration has begun, says FM Nirmala Sitharaman
Markets sustain winning streak — Sensex jumps over 560 points, Nifty tops 22,300-level
Sensex climbs 640 points, Nifty tops 22,300-level in early trade
MUST WATCH
Latest Additions
WATCH: 5 runaway military horses cause mayhem in London
FIR filed over BJP’s social media post allegedly promoting hatred and enmity: EC
Can’t control elections or pass directions on basis of suspicion: SC tells EVM critics
Amitabh Bachchan receives Lata Deenanath Mangeshkar Puraskar
Hubballi: Congress leader Randeep Surjewala visits Neha’s house, assures justice to family