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Tax Dept Introduces Utility For Ascertaining TDS On Cash Withdrawal

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Further, this verification provides that large sum is being withdrawn by those who have never filed their ITR.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

GoodReturns.in

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