Tax Deducted at Source (TDS) on cash withdrawals above INR 1 crore With effect from Sep 01, 2019, TDS of 2% would be levied on cash withdrawals exceeding Rs 1 crore as per Section 194N of the Income Tax Act 1961 ('Act') introduced in the Union Budget 2019.
As per the above regulation
TDS has to be deducted if a sum or aggregate of sum withdrawn in cash by a person in a particular Financial Year exceeds
20 lakh (if no Income Tax Returns has been filed for all the three previous Assessment Years), or 1 crore (if Income Tax Returns have been filed for all or any one of three previous AYs)
TDS will be deducted at a rate of 2% on cash withdrawals in excess of 1 crore if the person withdrawing the cash has filed income tax return for any or all three previous Assessment Years.
TDS will be deducted at 2% on cash withdrawals of more than 20 lakh and 5% for withdrawals exceeding 1 crore if the person withdrawing the cash has not filed Income Tax Return for any of the preceding three Assessment Years.
Customers of Padmavathi Cooperative Urban Bank Limited , may please take the cognizance of the above guidelines.
In case you require any further information, please visit the branch.