Income Tax: If you are withdrawing cash from the bank, be careful. 2% TDS will be deducted if you withdraw Rs 20 lakh or more from the bank in a year.
Income Tax: If you are withdrawing cash from the bank, be careful. Two percent TDS will be deducted on withdrawing Rs 20 lakh or more from the bank in a year. This rule will apply to those who have not filed income tax returns in the last three years.
Two percent TDS will be deducted
From September 1, 2019, the Income Tax Department had issued a rule, which said that if a person withdraws one crore rupees or more cash in a financial year from one or more of his bank accounts, then the bank will deduct two percent TDS. Tax consultants said that this provision has been implemented to encourage digital transactions. The new rule has come into force from July 1. If cash from Rs 20 lakh to one crore is withdrawn from the bank, then it will be investigated. If income tax return is not filed, then two percent TDS will be deducted. The Income Tax Department can also investigate how such a huge amount came into the account.
TDS will be deducted up to five percent
Five percent TDS will be deducted on withdrawing more than one crore cash. This rule is already there that if TDS is deducted from a person and he does not have PAN then the rate of TDS will be 20 percent.
The rule will be applicable on these people
Individual Hindu Undivided Family, Partnership Institution, Limited Liability, Partnership Firm, Association of Person Body of Individual Company, Local Body.
These are exempted
Government institutions, banks, post offices, cooperative societies working like banks.
Also know this
For the last three years, TDS is being deducted on cash withdrawal of more than Rs 20 lakh under section 194. This tax will have to be paid in case of not filing tax return.
What should you do
First you have to submit the PAN card details in the bank. If you have already given the PAN card details, there is no need to give it again. You will have to give the details of your income tax return to the bank. By doing this, you can save TDS on withdrawal of more than Rs 20 lakh.
This is TDS
If the remaining amount is given to the person after deducting tax from the income, then the amount deducted as tax is called TDS. The government collects tax through TDS. It is deducted on sources like salary, interest received on any investment or commission etc.
Bank account holders who are filing returns will have to pay 2 percent TDS on cash withdrawal of Rs 1 crore or more. Those who did not file returns will pay 2% tax on withdrawal of Rs 20 lakh. Banks have updated the software.
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