Categories: Business

cbdt launches tool for tds on cash withdrawals


cash withdrawals

new Delhi. The Income Tax Department has today introduced a new facility for banks and post offices, so that they can easily calculate TDS on cash withdrawal. According to the new rules, which came into effect from July 1, TDS will be deducted on withdrawals of more than 20 lakhs by those who do not file tax returns and more than 1 crore withdrawals by those who file their returns during a financial year. With this new facility, banks and post offices will be able to easily calculate TDS on withdrawals.

According to the CBDT, the bank and post office will now only have to provide the PAN number of the withdrawing person in this system. Along with giving the PAN number, if the person has filed tax return and his withdrawal will be more than Rs 1 crore, then the bank or post office will get the message of 2% TDS deduction immediately. On the other hand, if that person has not filed the tax return, then the message of deducting 2 per cent for more than 20 lakh withdrawals and 5 per cent TDS deduction for withdrawing more than 1 crore will come. According to the department, TDS will be calculated on time and faster with this facility.

The government has tightened rules on TDS to reduce cash withdrawal as well as to encourage people to file returns. In which TDS has been provided with a lower limit on those who do not file returns. According to the CBDT, statistics were being received that such people were withdrawing large amounts of cash, who never filled returns. In view of this, strictness was done in the rules.

This post was published on July 12, 2020 11:28 pm

Content Team

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