For Quick Alerts
For Daily Alerts

Entities Made Cash Withdrawals Of Over Rs 100 Cr Each, Prompting TDS


In a year, 448 entities withdrew over Rs 100 each which accounted for Rs 5.56 lakh crore in cash withdrawals, and prompted the government to take action to control it. The present Modi-led NDA government has been actively prompting the use of digital transactions to make India a paper-less economy. However, the number of cash withdrawals have increased rather than lower, post demonetisation.

Entities Made Cash Withdrawals Of Over Rs 100 Cr Each, Prompting TDS


Official data also showed that almost 2 lakh individuals and business entities withdrew over Rs one crore in cash from bank accounts in 2017-18. The withdrawals from these entities accounted for a total of over Rs 11.31 lakh crore in cash.

In her Budget Speech, Finance Minister Nirmala Sitharaman said, "To discourage the practice of making business payments in cash, I propose to levy TDS of 2 per cent on cash withdrawal exceeding Rs 1 crore in a year from a bank account".

A Times of India report earlier this week, citing sources, said that there were several instances where it is believed that the money withdrawn may have been used for illicit purposes as in these cases, the PAN furnished was either incorrect or not provided at all.

The government hopes to be able to get a better track on entities that withdraw large sums of cash by imposing the proposed TDS, as they will be required to provide the correct PAN in order to claim adjustment at the time of payment of advance tax.

Read more about: tds cash
Story first published: Wednesday, July 10, 2019, 18:01 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more