For Quick Alerts
For Daily Alerts

Tax Dept Introduces Utility For Ascertaining TDS On Cash Withdrawal


On Sunday, the department of Income Tax has introduced an utility for post office and banks to determine TDS chargeable in case of cash withdrawal over Rs. 20 lakh by non-filers as well as Rs. 1 crore in other cases.

Tax Dept Introduces Utility For Ascertaining TDS On Cash Withdrawal

And in it, the bank of post officials need to just provide for the PAN number of the person concerned who has made cash withdrawal for knowing the applicable TDS rate. On entering PAN, a message will be instantly displayed on the departmental utility --

"TDS is deductible at the rate of 2 per cent if cash withdrawal exceeds Rs 1 crore" (if the person withdrawing cash is a filer of ITR) and "TDS is deductible at the rate 2 per cent if cash withdrawal exceeds Rs 20 lakh and at the rate of 5 percent if it exceeds Rs 1 Crore" (in case of non-filers).

"So far, more than 53,000 verification requests have been executed successfully on this facility," an official statement said.

The functionality available as "Verification of applicability u/s 194N" on since July 1, 2020, is also made available to the banks via web-services such that the process can be automated and be linked to the Bank's internal CBS.

Further, this verification provides that large sum is being withdrawn by those who have never filed their ITR.

In order to check on these non-tax filers and also to deter cash withdrawals, with effect from July 1, 2020, cash withdrawal above Rs. 20 lakh by non-filers would attract tax rate @ 2% while for others i.e. those withdrawing an amount of over Rs. 1 crore, the tax rate is fixed at 5%.

Read more about: cash tds income tax
Story first published: Monday, July 13, 2020, 8:49 [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