New TDS rule on cash withdrawal w.e.f. 1st July 2020
Since September 1, 2019, Banks are required to deduct TDS @ 2% of the aggregate cash withdrawals exceeding Rs. 1 crore during a financial year, from one or more accounts, maintained by a customer. For this purpose, cash withdrawals under all the bank accounts under your PAN / Aadhaar are aggregated. This is as per Section 194N of the Income-tax Act, 1961. In absence of PAN / Aadhaar, TDS rate is 20%. New changes with effect from 1st July’20: If Income Tax returns are not filed for the preceding 3 Financial Years, for which the time limit for filing return under section 139(1) has expired, then rates of TDS would be as under: TDS at 2 % on aggregate cash withdrawal exceeding Rs 20 lakh to 1 crore, and TDS at 5 % on aggregate cash withdrawal exceeding Rs 1 crore. In all other cases, TDS at 2% would continue as mentioned above. Cash withdrawals from 1st April 2020 onwards would be considered for calculating combined / total cash withdrawal. Here is the list of persons and entities who ar